Correlation Between Beijing Mainstreets and China Asset
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By analyzing existing cross correlation between Beijing Mainstreets Investment and China Asset Management, you can compare the effects of market volatilities on Beijing Mainstreets and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and China Asset.
Diversification Opportunities for Beijing Mainstreets and China Asset
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and China Asset go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and China Asset
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the China Asset. In addition to that, Beijing Mainstreets is 4.45 times more volatile than China Asset Management. It trades about -0.06 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.12 per unit of volatility. If you would invest 256.00 in China Asset Management on September 14, 2024 and sell it today you would earn a total of 85.00 from holding China Asset Management or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. China Asset Management
Performance |
| Timeline |
| Beijing Mainstreets |
| China Asset Management |
Beijing Mainstreets and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and China Asset
The main advantage of trading using opposite Beijing Mainstreets and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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