Correlation Between China Securities and Beijing Bashi
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By analyzing existing cross correlation between China Securities 800 and Beijing Bashi Media, you can compare the effects of market volatilities on China Securities and Beijing Bashi 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 Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing Bashi.
Diversification Opportunities for China Securities and Beijing Bashi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of China Securities i.e., China Securities and Beijing Bashi go up and down completely randomly.
Pair Corralation between China Securities and Beijing Bashi
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Beijing Bashi. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.69 times less risky than Beijing Bashi. The index trades about -0.11 of its potential returns per unit of risk. The Beijing Bashi Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Beijing Bashi Media on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Beijing Bashi Media or generate 0.47% 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 Bashi Media
Performance |
| Timeline |
China Securities and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing Bashi Media
Pair trading matchups for Beijing Bashi
Pair Trading with China Securities and Beijing Bashi
The main advantage of trading using opposite China Securities and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Beijing Bashi vs. Peoples Insurance of | Beijing Bashi vs. Chongqing Shunbo Aluminum | Beijing Bashi vs. TongFu Microelectronics Co | Beijing Bashi vs. Shenzhen Clou Electronics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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