Correlation Between Beijing Mainstreets and Goodwill E
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Goodwill E Health, you can compare the effects of market volatilities on Beijing Mainstreets and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Goodwill E.
Diversification Opportunities for Beijing Mainstreets and Goodwill E
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Goodwill is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Goodwill E go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Goodwill E
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.55 times more return on investment than Goodwill E. However, Beijing Mainstreets is 1.55 times more volatile than Goodwill E Health. It trades about -0.01 of its potential returns per unit of risk. Goodwill E Health is currently generating about -0.71 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Goodwill E Health
Performance |
| Timeline |
| Beijing Mainstreets |
| Goodwill E Health |
Beijing Mainstreets and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Goodwill E
The main advantage of trading using opposite Beijing Mainstreets and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.| Beijing Mainstreets vs. Maoming Petro Chemical Shihua | Beijing Mainstreets vs. Dhc Software Co | Beijing Mainstreets vs. Sharetronic Data Technology | Beijing Mainstreets vs. HUAQIN TECHNOLOGY LTD |
| Goodwill E vs. Suzhou Industrial Park | Goodwill E vs. Guangzhou Haozhi Industrial | Goodwill E vs. Kunwu Jiuding Investment | Goodwill E vs. Beijing Mainstreets Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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