Correlation Between Central China and Beijing Roborock
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By analyzing existing cross correlation between Central China Land and Beijing Roborock Technology, you can compare the effects of market volatilities on Central China and Beijing Roborock 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 Central China with a short position of Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central China and Beijing Roborock.
Diversification Opportunities for Central China and Beijing Roborock
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Central and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Central China Land and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec and Central China 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 Central China Land are associated (or correlated) with Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Central China i.e., Central China and Beijing Roborock go up and down completely randomly.
Pair Corralation between Central China and Beijing Roborock
Assuming the 90 days trading horizon Central China Land is expected to generate 0.78 times more return on investment than Beijing Roborock. However, Central China Land is 1.29 times less risky than Beijing Roborock. It trades about -0.14 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.46 per unit of risk. If you would invest 1,176 in Central China Land on August 29, 2024 and sell it today you would lose (92.00) from holding Central China Land or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central China Land vs. Beijing Roborock Technology
Performance |
| Timeline |
| Central China Land |
| Beijing Roborock Tec |
Central China and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central China and Beijing Roborock
The main advantage of trading using opposite Central China and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central China position performs unexpectedly, Beijing Roborock 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 Roborock will offset losses from the drop in Beijing Roborock's long position.| Central China vs. Industrial and Commercial | Central China vs. Agricultural Bank of | Central China vs. China Construction Bank | Central China vs. Bank of China |
| Beijing Roborock vs. Sichuan Fulin Transportation | Beijing Roborock vs. Xinjiang Beixin RoadBridge | Beijing Roborock vs. Shanghai Broadband Technology | Beijing Roborock vs. Hunan TV Broadcast |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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