Correlation Between Beijing Mainstreets and Anhui Huaheng
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Beijing Mainstreets and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Anhui Huaheng.
Diversification Opportunities for Beijing Mainstreets and Anhui Huaheng
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Anhui is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Anhui Huaheng
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.49 times more return on investment than Anhui Huaheng. However, Beijing Mainstreets is 1.49 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.41 per unit of risk. If you would invest 239.00 in Beijing Mainstreets Investment on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Beijing Mainstreets Investment or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Beijing Mainstreets |
| Anhui Huaheng Biotec |
Beijing Mainstreets and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Anhui Huaheng
The main advantage of trading using opposite Beijing Mainstreets and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Beijing Mainstreets vs. Agricultural Bank of | Beijing Mainstreets vs. Industrial and Commercial | Beijing Mainstreets vs. Bank of China | Beijing Mainstreets vs. China Construction Bank |
| Anhui Huaheng vs. Shandong Sanyuan Biotechnology | Anhui Huaheng vs. Shanghai Rightongene Biotechnology | Anhui Huaheng vs. Ningbo MedicalSystem Biotechnology | Anhui Huaheng vs. Gan Yuan Foods |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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