Correlation Between China Securities and Beken Corp
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By analyzing existing cross correlation between China Securities 800 and Beken Corp, you can compare the effects of market volatilities on China Securities and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beken Corp.
Diversification Opportunities for China Securities and Beken Corp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beken is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of China Securities i.e., China Securities and Beken Corp go up and down completely randomly.
Pair Corralation between China Securities and Beken Corp
Assuming the 90 days trading horizon China Securities is expected to generate 2.14 times less return on investment than Beken Corp. But when comparing it to its historical volatility, China Securities 800 is 2.05 times less risky than Beken Corp. It trades about 0.08 of its potential returns per unit of risk. Beken Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,245 in Beken Corp on September 27, 2024 and sell it today you would earn a total of 677.00 from holding Beken Corp or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Beken Corp
Performance |
| Timeline |
China Securities and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beken Corp
Pair trading matchups for Beken Corp
Pair Trading with China Securities and Beken Corp
The main advantage of trading using opposite China Securities and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| China Securities vs. Zhongshan Public Utilities | China Securities vs. Jiangsu GDK Biotechnology | China Securities vs. Sichuan Hebang Biotechnology | China Securities vs. Sunny Loan Top |
| Beken Corp vs. Guangzhou Restaurants Group | Beken Corp vs. Hefei Metalforming Mach | Beken Corp vs. Guangdong Wens Foodstuff | Beken Corp vs. Bus Online Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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