Correlation Between Changchun High and BeiGene
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By analyzing existing cross correlation between Changchun High New and BeiGene, you can compare the effects of market volatilities on Changchun High and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and BeiGene.
Diversification Opportunities for Changchun High and BeiGene
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and BeiGene is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Changchun High i.e., Changchun High and BeiGene go up and down completely randomly.
Pair Corralation between Changchun High and BeiGene
Assuming the 90 days trading horizon Changchun High is expected to generate 1.94 times less return on investment than BeiGene. But when comparing it to its historical volatility, Changchun High New is 2.12 times less risky than BeiGene. It trades about 0.3 of its potential returns per unit of risk. BeiGene is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 18,218 in BeiGene on November 18, 2024 and sell it today you would earn a total of 1,556 from holding BeiGene or generate 8.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Changchun High New vs. BeiGene
Performance |
Timeline |
Changchun High New |
BeiGene |
Changchun High and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changchun High and BeiGene
The main advantage of trading using opposite Changchun High and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.Changchun High vs. Guolin Environmental Tech | Changchun High vs. Dazhong Transportation Group | Changchun High vs. GreenTech Environmental Co | Changchun High vs. Penyao Environmental Protection |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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