Correlation Between China Securities and Beijing Bewinner
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By analyzing existing cross correlation between China Securities 800 and Beijing Bewinner Communications, you can compare the effects of market volatilities on China Securities and Beijing Bewinner 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 China Securities with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing Bewinner.
Diversification Opportunities for China Securities and Beijing Bewinner
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and China Securities 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 China Securities 800 are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of China Securities i.e., China Securities and Beijing Bewinner go up and down completely randomly.
Pair Corralation between China Securities and Beijing Bewinner
Assuming the 90 days trading horizon China Securities is expected to generate 5.37 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, China Securities 800 is 2.5 times less risky than Beijing Bewinner. It trades about 0.01 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 607.00 in Beijing Bewinner Communications on August 31, 2024 and sell it today you would earn a total of 27.00 from holding Beijing Bewinner Communications or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Beijing Bewinner Communication
Performance |
| Timeline |
China Securities and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing Bewinner Communications
Pair trading matchups for Beijing Bewinner
Pair Trading with China Securities and Beijing Bewinner
The main advantage of trading using opposite China Securities and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.| China Securities vs. Sinofibers Technology Co | China Securities vs. Anji Foodstuff Co | China Securities vs. Niutech Environment Technology | China Securities vs. Linewell Software Co |
| Beijing Bewinner vs. BYD Co Ltd | Beijing Bewinner vs. Agricultural Bank of | Beijing Bewinner vs. Industrial and Commercial | Beijing Bewinner vs. China State Construction |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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