Correlation Between Central China and BeiGene
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By analyzing existing cross correlation between Central China Land and BeiGene, you can compare the effects of market volatilities on Central China 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 Central China with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central China and BeiGene.
Diversification Opportunities for Central China and BeiGene
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Central and BeiGene is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Central China Land and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 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 Central China i.e., Central China and BeiGene go up and down completely randomly.
Pair Corralation between Central China and BeiGene
Assuming the 90 days trading horizon Central China Land is expected to generate 0.86 times more return on investment than BeiGene. However, Central China Land is 1.17 times less risky than BeiGene. It trades about -0.02 of its potential returns per unit of risk. BeiGene is currently generating about -0.09 per unit of risk. If you would invest 1,154 in Central China Land on August 24, 2024 and sell it today you would lose (20.00) from holding Central China Land or give up 1.73% 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. BeiGene
Performance |
| Timeline |
| Central China Land |
| BeiGene |
Central China and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central China and BeiGene
The main advantage of trading using opposite Central China and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central China 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.| Central China vs. Hunan Investment Group | Central China vs. GigaDevice SemiconductorBeiji | Central China vs. Henan Shuanghui Investment | Central China vs. Shaanxi Energy Investment |
| BeiGene vs. Sichuan Teway Food | BeiGene vs. Xinjiang Tianrun Dairy | BeiGene vs. Shantou Wanshun Package | BeiGene vs. Easyhome New Retail |
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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