Correlation Between Beijing Mainstreets and Beijing Jiaman
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Beijing Jiaman Dress, you can compare the effects of market volatilities on Beijing Mainstreets and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Beijing Jiaman.
Diversification Opportunities for Beijing Mainstreets and Beijing Jiaman
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Beijing is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Beijing Jiaman
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.55 times more return on investment than Beijing Jiaman. However, Beijing Mainstreets is 1.55 times more volatile than Beijing Jiaman Dress. It trades about -0.03 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.27 per unit of risk. If you would invest 259.00 in Beijing Mainstreets Investment on October 13, 2024 and sell it today you would lose (11.00) from holding Beijing Mainstreets Investment or give up 4.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Beijing Mainstreets |
| Beijing Jiaman Dress |
Beijing Mainstreets and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Beijing Jiaman
The main advantage of trading using opposite Beijing Mainstreets and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Beijing Mainstreets vs. King Strong New Material | Beijing Mainstreets vs. Shuhua Sports Co | Beijing Mainstreets vs. Jiangsu Jinling Sports | Beijing Mainstreets vs. Dazhong Transportation Group |
| Beijing Jiaman vs. Postal Savings Bank | Beijing Jiaman vs. Beijing Mainstreets Investment | Beijing Jiaman vs. Aofu Environmental Technology | Beijing Jiaman vs. Qiaoyin Environmental Tech |
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 CEOs Directory module to screen CEOs from public companies around the world.
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