Correlation Between Tieling Newcity and BeiGene
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By analyzing existing cross correlation between Tieling Newcity Investment and BeiGene, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and BeiGene.
Diversification Opportunities for Tieling Newcity and BeiGene
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and BeiGene is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Tieling Newcity 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 Tieling Newcity Investment 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 Tieling Newcity i.e., Tieling Newcity and BeiGene go up and down completely randomly.
Pair Corralation between Tieling Newcity and BeiGene
Assuming the 90 days trading horizon Tieling Newcity is expected to generate 6.06 times less return on investment than BeiGene. In addition to that, Tieling Newcity is 1.07 times more volatile than BeiGene. It trades about 0.06 of its total potential returns per unit of risk. BeiGene is currently generating about 0.36 per unit of volatility. If you would invest 16,044 in BeiGene on October 31, 2024 and sell it today you would earn a total of 3,025 from holding BeiGene or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. BeiGene
Performance |
| Timeline |
| Tieling Newcity Inve |
| BeiGene |
Tieling Newcity and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and BeiGene
The main advantage of trading using opposite Tieling Newcity and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.| Tieling Newcity vs. Bank of Communications | Tieling Newcity vs. Jiangsu Yanghe Brewery | Tieling Newcity vs. Tongyu Communication | Tieling Newcity vs. Runjian Communication Co |
| BeiGene vs. Marssenger Kitchenware Co | BeiGene vs. Changjiang Publishing Media | BeiGene vs. Sinocelltech Group | BeiGene vs. Shandong Publishing Media |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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