Correlation Between Beijing Shunxin and Dongjiang Environmental
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Dongjiang Environmental Co, you can compare the effects of market volatilities on Beijing Shunxin and Dongjiang Environmental 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 Shunxin with a short position of Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Dongjiang Environmental.
Diversification Opportunities for Beijing Shunxin and Dongjiang Environmental
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Dongjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental and Beijing Shunxin 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 Shunxin Agriculture are associated (or correlated) with Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Dongjiang Environmental
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to generate 1.14 times more return on investment than Dongjiang Environmental. However, Beijing Shunxin is 1.14 times more volatile than Dongjiang Environmental Co. It trades about 0.07 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about 0.0 per unit of risk. If you would invest 2,039 in Beijing Shunxin Agriculture on September 14, 2024 and sell it today you would earn a total of 59.00 from holding Beijing Shunxin Agriculture or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Dongjiang Environmental Co
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Dongjiang Environmental |
Beijing Shunxin and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Dongjiang Environmental
The main advantage of trading using opposite Beijing Shunxin and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental's long position.| Beijing Shunxin vs. China Life Insurance | Beijing Shunxin vs. Cinda Securities Co | Beijing Shunxin vs. Piotech Inc A | Beijing Shunxin vs. Dongxing Sec Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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