Correlation Between China Securities and Beijing Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Beijing Capital Co, you can compare the effects of market volatilities on China Securities and Beijing Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing Capital.
Diversification Opportunities for China Securities and Beijing Capital
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Capital 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 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Capital has no effect on the direction of China Securities i.e., China Securities and Beijing Capital go up and down completely randomly.
Pair Corralation between China Securities and Beijing Capital
Assuming the 90 days trading horizon China Securities is expected to generate 4.32 times less return on investment than Beijing Capital. But when comparing it to its historical volatility, China Securities 800 is 1.06 times less risky than Beijing Capital. It trades about 0.0 of its potential returns per unit of risk. Beijing Capital Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 285.00 in Beijing Capital Co on November 29, 2024 and sell it today you would earn a total of 21.00 from holding Beijing Capital Co or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Securities 800 vs. Beijing Capital Co
Performance |
| Timeline |
China Securities and Beijing Capital Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing Capital Co
Pair trading matchups for Beijing Capital
Pair Trading with China Securities and Beijing Capital
The main advantage of trading using opposite China Securities and Beijing Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing Capital 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 Capital will offset losses from the drop in Beijing Capital's long position.| China Securities vs. Tonghua Grape Wine | China Securities vs. Soochow Suzhou Industrial | China Securities vs. Sichuan Yahua Industrial | China Securities vs. Gansu Huangtai Wine marketing |
| Beijing Capital vs. Xiamen Insight Investment | Beijing Capital vs. Zoje Resources Investment | Beijing Capital vs. Zhejiang Construction Investment | Beijing Capital vs. Zhongrun 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |