Correlation Between Sinosteel Engineering and Beijing Bashi
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By analyzing existing cross correlation between Sinosteel Engineering and and Beijing Bashi Media, you can compare the effects of market volatilities on Sinosteel Engineering 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 Sinosteel Engineering with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Beijing Bashi.
Diversification Opportunities for Sinosteel Engineering and Beijing Bashi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and 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 Sinosteel Engineering 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 Sinosteel Engineering and 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 Sinosteel Engineering i.e., Sinosteel Engineering and Beijing Bashi go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Beijing Bashi
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 0.81 times more return on investment than Beijing Bashi. However, Sinosteel Engineering and is 1.23 times less risky than Beijing Bashi. It trades about 0.26 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.1 per unit of risk. If you would invest 634.00 in Sinosteel Engineering and on August 25, 2024 and sell it today you would earn a total of 76.00 from holding Sinosteel Engineering and or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Beijing Bashi Media
Performance |
| Timeline |
| Sinosteel Engineering and |
| Beijing Bashi Media |
Sinosteel Engineering and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Beijing Bashi
The main advantage of trading using opposite Sinosteel Engineering and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering 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.| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology |
| Beijing Bashi vs. China Petroleum Chemical | Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. China State Construction | Beijing Bashi vs. China Railway Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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