Correlation Between Beijing Mainstreets and Rising Nonferrous
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Rising Nonferrous Metals, you can compare the effects of market volatilities on Beijing Mainstreets and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Rising Nonferrous.
Diversification Opportunities for Beijing Mainstreets and Rising Nonferrous
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Rising is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Rising Nonferrous
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.48 times more return on investment than Rising Nonferrous. However, Beijing Mainstreets is 1.48 times more volatile than Rising Nonferrous Metals. It trades about -0.01 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.04 per unit of risk. If you would invest 250.00 in Beijing Mainstreets Investment on October 12, 2024 and sell it today you would lose (6.00) from holding Beijing Mainstreets Investment or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Beijing Mainstreets |
| Rising Nonferrous Metals |
Beijing Mainstreets and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Rising Nonferrous
The main advantage of trading using opposite Beijing Mainstreets and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Beijing Mainstreets vs. Huasi Agricultural Development | Beijing Mainstreets vs. Tianshui Huatian Technology | Beijing Mainstreets vs. Qijing Machinery | Beijing Mainstreets vs. Guangzhou KDT Machinery |
| Rising Nonferrous vs. Smartgiant Technology Co | Rising Nonferrous vs. Eyebright Medical Technology | Rising Nonferrous vs. Keeson Technology Corp | Rising Nonferrous vs. Olympic Circuit Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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