Correlation Between Beijing New and Railway Signal
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By analyzing existing cross correlation between Beijing New Building and Railway Signal Communication, you can compare the effects of market volatilities on Beijing New and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing New and Railway Signal.
Diversification Opportunities for Beijing New and Railway Signal
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Railway is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing New Building and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Beijing New i.e., Beijing New and Railway Signal go up and down completely randomly.
Pair Corralation between Beijing New and Railway Signal
Assuming the 90 days trading horizon Beijing New Building is expected to generate 0.84 times more return on investment than Railway Signal. However, Beijing New Building is 1.18 times less risky than Railway Signal. It trades about -0.18 of its potential returns per unit of risk. Railway Signal Communication is currently generating about -0.25 per unit of risk. If you would invest 3,025 in Beijing New Building on September 12, 2024 and sell it today you would lose (134.00) from holding Beijing New Building or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing New Building vs. Railway Signal Communication
Performance |
| Timeline |
| Beijing New Building |
| Railway Signal Commu |
Beijing New and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing New and Railway Signal
The main advantage of trading using opposite Beijing New and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing New position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.| Beijing New vs. Huaxia Fund Management | Beijing New vs. Shaanxi Energy Investment | Beijing New vs. Nuode Investment Co | Beijing New vs. Hubei Geoway Investment |
| Railway Signal vs. Agricultural Bank of | Railway Signal vs. Industrial and Commercial | Railway Signal vs. Bank of China | Railway Signal vs. PetroChina Co Ltd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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