Correlation Between Beijing Mainstreets and Hunan Airbluer
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Mainstreets Investment and Hunan Airbluer Environmental, you can compare the effects of market volatilities on Beijing Mainstreets and Hunan Airbluer 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 Hunan Airbluer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Hunan Airbluer.
Diversification Opportunities for Beijing Mainstreets and Hunan Airbluer
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Hunan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Hunan Airbluer Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Airbluer Envir 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 Hunan Airbluer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Airbluer Envir has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Hunan Airbluer go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Hunan Airbluer
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Hunan Airbluer. In addition to that, Beijing Mainstreets is 1.02 times more volatile than Hunan Airbluer Environmental. It trades about -0.24 of its total potential returns per unit of risk. Hunan Airbluer Environmental is currently generating about -0.02 per unit of volatility. If you would invest 4,997 in Hunan Airbluer Environmental on September 27, 2024 and sell it today you would lose (134.00) from holding Hunan Airbluer Environmental or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Hunan Airbluer Environmental
Performance |
| Timeline |
| Beijing Mainstreets |
| Hunan Airbluer Envir |
Beijing Mainstreets and Hunan Airbluer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Hunan Airbluer
The main advantage of trading using opposite Beijing Mainstreets and Hunan Airbluer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Hunan Airbluer 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 Hunan Airbluer will offset losses from the drop in Hunan Airbluer's long position.| Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets vs. Ping An Insurance |
| Hunan Airbluer vs. Uxi Unicomp Technology | Hunan Airbluer vs. Shenzhen Centralcon Investment | Hunan Airbluer vs. Beijing Mainstreets Investment | Hunan Airbluer vs. Quectel Wireless Solutions |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |