Correlation Between Cofco Biochemical and Beijing Shanghai
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By analyzing existing cross correlation between Cofco Biochemical Anhui and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Cofco Biochemical and Beijing Shanghai 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 Cofco Biochemical with a short position of Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofco Biochemical and Beijing Shanghai.
Diversification Opportunities for Cofco Biochemical and Beijing Shanghai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cofco and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cofco Biochemical Anhui and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High and Cofco Biochemical 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 Cofco Biochemical Anhui are associated (or correlated) with Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Cofco Biochemical i.e., Cofco Biochemical and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Cofco Biochemical and Beijing Shanghai
Assuming the 90 days trading horizon Cofco Biochemical Anhui is expected to under-perform the Beijing Shanghai. In addition to that, Cofco Biochemical is 1.72 times more volatile than Beijing Shanghai High Speed. It trades about -0.01 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.07 per unit of volatility. If you would invest 493.00 in Beijing Shanghai High Speed on September 14, 2024 and sell it today you would earn a total of 123.00 from holding Beijing Shanghai High Speed or generate 24.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Cofco Biochemical Anhui vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Cofco Biochemical Anhui |
| Beijing Shanghai High |
Cofco Biochemical and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofco Biochemical and Beijing Shanghai
The main advantage of trading using opposite Cofco Biochemical and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofco Biochemical position performs unexpectedly, Beijing Shanghai 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 Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Cofco Biochemical vs. Zijin Mining Group | Cofco Biochemical vs. Wanhua Chemical Group | Cofco Biochemical vs. Baoshan Iron Steel | Cofco Biochemical vs. Shandong Gold Mining |
| Beijing Shanghai vs. Tianshui Huatian Technology | Beijing Shanghai vs. Shenyang Chemical Industry | Beijing Shanghai vs. Suzhou Douson Drilling | Beijing Shanghai vs. Cofco Biochemical Anhui |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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