Correlation Between China Securities and Beijing YanDong
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By analyzing existing cross correlation between China Securities 800 and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on China Securities and Beijing YanDong 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 YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Beijing YanDong.
Diversification Opportunities for China Securities and Beijing YanDong
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of China Securities i.e., China Securities and Beijing YanDong go up and down completely randomly.
Pair Corralation between China Securities and Beijing YanDong
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.3 times more return on investment than Beijing YanDong. However, China Securities 800 is 3.28 times less risky than Beijing YanDong. It trades about -0.29 of its potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about -0.17 per unit of risk. If you would invest 432,984 in China Securities 800 on October 12, 2024 and sell it today you would lose (27,815) from holding China Securities 800 or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
China Securities and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Beijing YanDong MicroElectronic
Pair trading matchups for Beijing YanDong
Pair Trading with China Securities and Beijing YanDong
The main advantage of trading using opposite China Securities and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Beijing YanDong 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 YanDong will offset losses from the drop in Beijing YanDong's long position.| China Securities vs. Huatian Hotel Group | China Securities vs. Keeson Technology Corp | China Securities vs. Jiujiang Shanshui Technology | China Securities vs. Smartgiant Technology Co |
| Beijing YanDong vs. Ping An Insurance | Beijing YanDong vs. China Life Insurance | Beijing YanDong vs. Hubei Geoway Investment | Beijing YanDong vs. Penyao Environmental Protection |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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