Correlation Between Beijing New and Arrow Home
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By analyzing existing cross correlation between Beijing New Building and Arrow Home Group, you can compare the effects of market volatilities on Beijing New and Arrow Home 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 Beijing New with a short position of Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing New and Arrow Home.
Diversification Opportunities for Beijing New and Arrow Home
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Arrow is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing New Building and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group and Beijing New 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 Beijing New Building are associated (or correlated) with Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Beijing New i.e., Beijing New and Arrow Home go up and down completely randomly.
Pair Corralation between Beijing New and Arrow Home
Assuming the 90 days trading horizon Beijing New Building is expected to generate 0.96 times more return on investment than Arrow Home. However, Beijing New Building is 1.04 times less risky than Arrow Home. It trades about 0.09 of its potential returns per unit of risk. Arrow Home Group is currently generating about 0.07 per unit of risk. If you would invest 2,618 in Beijing New Building on August 25, 2024 and sell it today you would earn a total of 266.00 from holding Beijing New Building or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing New Building vs. Arrow Home Group
Performance |
| Timeline |
| Beijing New Building |
| Arrow Home Group |
Beijing New and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing New and Arrow Home
The main advantage of trading using opposite Beijing New and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing New position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.| Beijing New vs. Shanghai Yanpu Metal | Beijing New vs. Winner Medical Co | Beijing New vs. Hefei Metalforming Mach | Beijing New vs. Lootom Telcovideo Network |
| Arrow Home vs. Zhongtong Guomai Communication | Arrow Home vs. Guangdong Shenglu Telecommunication | Arrow Home vs. HanS Laser Tech | Arrow Home vs. Changchun Faway Automobile |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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