Correlation Between Beijing Mainstreets and Zhejiang HISUN
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Zhejiang HISUN Biomaterials, you can compare the effects of market volatilities on Beijing Mainstreets and Zhejiang HISUN 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 Zhejiang HISUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Zhejiang HISUN.
Diversification Opportunities for Beijing Mainstreets and Zhejiang HISUN
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Zhejiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Zhejiang HISUN Biomaterials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang HISUN Bioma 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 Zhejiang HISUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang HISUN Bioma has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Zhejiang HISUN go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Zhejiang HISUN
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Zhejiang HISUN. In addition to that, Beijing Mainstreets is 1.84 times more volatile than Zhejiang HISUN Biomaterials. It trades about -0.06 of its total potential returns per unit of risk. Zhejiang HISUN Biomaterials is currently generating about 0.04 per unit of volatility. If you would invest 1,081 in Zhejiang HISUN Biomaterials on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Zhejiang HISUN Biomaterials or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Zhejiang HISUN Biomaterials
Performance |
| Timeline |
| Beijing Mainstreets |
| Zhejiang HISUN Bioma |
Beijing Mainstreets and Zhejiang HISUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Zhejiang HISUN
The main advantage of trading using opposite Beijing Mainstreets and Zhejiang HISUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Zhejiang HISUN 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 Zhejiang HISUN will offset losses from the drop in Zhejiang HISUN'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 |
| Zhejiang HISUN vs. Lander Sports Development | Zhejiang HISUN vs. Hua Xia Bank | Zhejiang HISUN vs. China World Trade | Zhejiang HISUN vs. Panda Financial Holding |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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