Correlation Between Beijing Mainstreets and Yingde Greatchem
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Beijing Mainstreets and Yingde Greatchem and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Mainstreets with a short position of Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Yingde Greatchem.
Diversification Opportunities for Beijing Mainstreets and Yingde Greatchem
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Yingde is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che and Beijing Mainstreets is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Mainstreets Investment are associated (or correlated) with Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Yingde Greatchem
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.5 times more return on investment than Yingde Greatchem. However, Beijing Mainstreets is 1.5 times more volatile than Yingde Greatchem Chemicals. It trades about 0.26 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.05 per unit of risk. If you would invest 227.00 in Beijing Mainstreets Investment on October 24, 2024 and sell it today you would earn a total of 41.00 from holding Beijing Mainstreets Investment or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Beijing Mainstreets |
| Yingde Greatchem Che |
Beijing Mainstreets and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Yingde Greatchem
The main advantage of trading using opposite Beijing Mainstreets and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Yingde Greatchem can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Beijing Mainstreets vs. Unisplendour Corp | Beijing Mainstreets vs. Jointo Energy Investment | Beijing Mainstreets vs. Harbin Hatou Investment | Beijing Mainstreets vs. Jiangsu Yueda Investment |
| Yingde Greatchem vs. Beijing Mainstreets Investment | Yingde Greatchem vs. Soyea Technology Co | Yingde Greatchem vs. Jointo Energy Investment | Yingde Greatchem vs. Keeson Technology Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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