Correlation Between Beijing Hualian and Beijing Zhidemai
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By analyzing existing cross correlation between Beijing Hualian Department and Beijing Zhidemai Technology, you can compare the effects of market volatilities on Beijing Hualian and Beijing Zhidemai 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 Hualian with a short position of Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Hualian and Beijing Zhidemai.
Diversification Opportunities for Beijing Hualian and Beijing Zhidemai
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Beijing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Hualian Department and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec and Beijing Hualian 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 Hualian Department are associated (or correlated) with Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of Beijing Hualian i.e., Beijing Hualian and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between Beijing Hualian and Beijing Zhidemai
Assuming the 90 days trading horizon Beijing Hualian Department is expected to under-perform the Beijing Zhidemai. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Hualian Department is 1.01 times less risky than Beijing Zhidemai. The stock trades about -0.41 of its potential returns per unit of risk. The Beijing Zhidemai Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,766 in Beijing Zhidemai Technology on November 27, 2024 and sell it today you would earn a total of 30.00 from holding Beijing Zhidemai Technology or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Hualian Department vs. Beijing Zhidemai Technology
Performance |
| Timeline |
| Beijing Hualian Depa |
| Beijing Zhidemai Tec |
Beijing Hualian and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Hualian and Beijing Zhidemai
The main advantage of trading using opposite Beijing Hualian and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Hualian position performs unexpectedly, Beijing Zhidemai 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 Beijing Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| Beijing Hualian vs. China Sports Industry | Beijing Hualian vs. Rising Nonferrous Metals | Beijing Hualian vs. Huaxia Fund Management | Beijing Hualian vs. AVIC Fund Management |
| Beijing Zhidemai vs. Anhui Huaheng Biotechnology | Beijing Zhidemai vs. XinJiang GuoTong Pipeline | Beijing Zhidemai vs. Anhui Tongguan Copper | Beijing Zhidemai vs. Zhejiang Yongjin Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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