Correlation Between Beijing Shunxin and Eyebright Medical
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Eyebright Medical Technology, you can compare the effects of market volatilities on Beijing Shunxin and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Eyebright Medical.
Diversification Opportunities for Beijing Shunxin and Eyebright Medical
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Eyebright is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Eyebright Medical go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Eyebright Medical
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Eyebright Medical. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 1.1 times less risky than Eyebright Medical. The stock trades about -0.32 of its potential returns per unit of risk. The Eyebright Medical Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,199 in Eyebright Medical Technology on October 18, 2024 and sell it today you would earn a total of 384.00 from holding Eyebright Medical Technology or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Eyebright Medical Technology
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Eyebright Medical |
Beijing Shunxin and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Eyebright Medical
The main advantage of trading using opposite Beijing Shunxin and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Beijing Shunxin vs. Yunnan Jianzhijia Health Chain | Beijing Shunxin vs. Shandong Sinoglory Health | Beijing Shunxin vs. Hangzhou Minsheng Healthcare | Beijing Shunxin vs. Shenyang Huitian Thermal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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