Correlation Between Changchun High and Beken Corp
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By analyzing existing cross correlation between Changchun High New and Beken Corp, you can compare the effects of market volatilities on Changchun High and Beken Corp 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 Changchun High with a short position of Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Beken Corp.
Diversification Opportunities for Changchun High and Beken Corp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Beken is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp and Changchun High 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 Changchun High New are associated (or correlated) with Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Changchun High i.e., Changchun High and Beken Corp go up and down completely randomly.
Pair Corralation between Changchun High and Beken Corp
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Beken Corp. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.37 times less risky than Beken Corp. The stock trades about -0.04 of its potential returns per unit of risk. The Beken Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,922 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 173.00 from holding Beken Corp or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Beken Corp
Performance |
| Timeline |
| Changchun High New |
| Beken Corp |
Changchun High and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Beken Corp
The main advantage of trading using opposite Changchun High and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Changchun High vs. Agricultural Bank of | Changchun High vs. Industrial and Commercial | Changchun High vs. Bank of China | Changchun High vs. China Construction Bank |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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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