Correlation Between Beijing Shunxin and Caihong Display
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Caihong Display Devices, you can compare the effects of market volatilities on Beijing Shunxin and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Caihong Display.
Diversification Opportunities for Beijing Shunxin and Caihong Display
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Caihong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Caihong Display go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Caihong Display
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Caihong Display. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 1.14 times less risky than Caihong Display. The stock trades about -0.3 of its potential returns per unit of risk. The Caihong Display Devices is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 766.00 in Caihong Display Devices on October 12, 2024 and sell it today you would earn a total of 54.00 from holding Caihong Display Devices or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Caihong Display Devices
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Caihong Display Devices |
Beijing Shunxin and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Caihong Display
The main advantage of trading using opposite Beijing Shunxin and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Beijing Shunxin vs. Sunny Loan Top | Beijing Shunxin vs. HUAQIN TECHNOLOGY LTD | Beijing Shunxin vs. Changjiang Publishing Media | Beijing Shunxin vs. Thinkingdom Media Group |
| Caihong Display vs. XiaMen HongXin Electron tech | Caihong Display vs. Beijing Shunxin Agriculture | Caihong Display vs. Dhc Software Co | Caihong Display vs. Holitech Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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