Correlation Between Hongrun Construction and Beijing Bewinner
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By analyzing existing cross correlation between Hongrun Construction Group and Beijing Bewinner Communications, you can compare the effects of market volatilities on Hongrun Construction and Beijing Bewinner 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 Hongrun Construction with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Beijing Bewinner.
Diversification Opportunities for Hongrun Construction and Beijing Bewinner
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hongrun and Beijing is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Hongrun Construction and Beijing Bewinner
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 1.01 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Hongrun Construction Group is 1.63 times less risky than Beijing Bewinner. It trades about 0.09 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 607.00 in Beijing Bewinner Communications on November 6, 2024 and sell it today you would earn a total of 58.00 from holding Beijing Bewinner Communications or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Hongrun Construction |
| Beijing Bewinner Com |
Hongrun Construction and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Beijing Bewinner
The main advantage of trading using opposite Hongrun Construction and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Hongrun Construction vs. China World Trade | Hongrun Construction vs. NBTM New Materials | Hongrun Construction vs. Guangdong Sunwill Precising | Hongrun Construction vs. Shanghai Yaoji Playing |
| Beijing Bewinner vs. Offcn Education Technology | Beijing Bewinner vs. Linkage Software Co | Beijing Bewinner vs. China Publishing Media | Beijing Bewinner vs. Jiangsu Phoenix Publishing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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