Correlation Between Shaanxi Meineng and BeiGene
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By analyzing existing cross correlation between Shaanxi Meineng Clean and BeiGene, you can compare the effects of market volatilities on Shaanxi Meineng and BeiGene 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 Shaanxi Meineng with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and BeiGene.
Diversification Opportunities for Shaanxi Meineng and BeiGene
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and BeiGene is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and BeiGene go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and BeiGene
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the BeiGene. In addition to that, Shaanxi Meineng is 1.05 times more volatile than BeiGene. It trades about -0.01 of its total potential returns per unit of risk. BeiGene is currently generating about 0.03 per unit of volatility. If you would invest 13,788 in BeiGene on September 13, 2024 and sell it today you would earn a total of 2,401 from holding BeiGene or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. BeiGene
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| BeiGene |
Shaanxi Meineng and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and BeiGene
The main advantage of trading using opposite Shaanxi Meineng and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Shaanxi Meineng vs. Innovative Medical Management | Shaanxi Meineng vs. Cowealth Medical China | Shaanxi Meineng vs. Zhongzhu Medical Holdings | Shaanxi Meineng vs. Touchstone International Medical |
| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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