Correlation Between Xiandai Investment and BeiGene
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By analyzing existing cross correlation between Xiandai Investment Co and BeiGene, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and BeiGene.
Diversification Opportunities for Xiandai Investment and BeiGene
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiandai and BeiGene is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and BeiGene go up and down completely randomly.
Pair Corralation between Xiandai Investment and BeiGene
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.84 times more return on investment than BeiGene. However, Xiandai Investment Co is 1.19 times less risky than BeiGene. It trades about -0.05 of its potential returns per unit of risk. BeiGene is currently generating about -0.07 per unit of risk. If you would invest 457.00 in Xiandai Investment Co on September 27, 2024 and sell it today you would lose (10.00) from holding Xiandai Investment Co or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. BeiGene
Performance |
| Timeline |
| Xiandai Investment |
| BeiGene |
Xiandai Investment and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and BeiGene
The main advantage of trading using opposite Xiandai Investment and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Luyin Investment Group | Xiandai Investment vs. Jiaozuo Wanfang Aluminum | Xiandai Investment vs. Ye Chiu Metal | Xiandai Investment vs. Tianshan Aluminum Group |
| BeiGene vs. Beijing Mainstreets Investment | BeiGene vs. Shenzhen SDG Information | BeiGene vs. Xiandai Investment Co | BeiGene vs. Zoje Resources Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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