Correlation Between ChengDu Hi and Beijing Wantai
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By analyzing existing cross correlation between ChengDu Hi Tech Development and Beijing Wantai Biological, you can compare the effects of market volatilities on ChengDu Hi and Beijing Wantai 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 ChengDu Hi with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi and Beijing Wantai.
Diversification Opportunities for ChengDu Hi and Beijing Wantai
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChengDu and Beijing is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and ChengDu Hi 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 ChengDu Hi Tech Development are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of ChengDu Hi i.e., ChengDu Hi and Beijing Wantai go up and down completely randomly.
Pair Corralation between ChengDu Hi and Beijing Wantai
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to generate 1.91 times more return on investment than Beijing Wantai. However, ChengDu Hi is 1.91 times more volatile than Beijing Wantai Biological. It trades about 0.08 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.04 per unit of risk. If you would invest 4,470 in ChengDu Hi Tech Development on September 3, 2024 and sell it today you would earn a total of 1,431 from holding ChengDu Hi Tech Development or generate 32.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Beijing Wantai Biological
Performance |
| Timeline |
| ChengDu Hi Tech |
| Beijing Wantai Biological |
ChengDu Hi and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi and Beijing Wantai
The main advantage of trading using opposite ChengDu Hi and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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