Correlation Between Beijing Bewinner and Chongqing Changan
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By analyzing existing cross correlation between Beijing Bewinner Communications and Chongqing Changan Automobile, you can compare the effects of market volatilities on Beijing Bewinner and Chongqing Changan 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 Beijing Bewinner with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Chongqing Changan.
Diversification Opportunities for Beijing Bewinner and Chongqing Changan
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Chongqing is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Beijing Bewinner 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 Beijing Bewinner Communications are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Chongqing Changan go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Chongqing Changan
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.18 times more return on investment than Chongqing Changan. However, Beijing Bewinner is 1.18 times more volatile than Chongqing Changan Automobile. It trades about 0.02 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.01 per unit of risk. If you would invest 590.00 in Beijing Bewinner Communications on October 16, 2024 and sell it today you would lose (3.00) from holding Beijing Bewinner Communications or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Beijing Bewinner Com |
| Chongqing Changan |
Beijing Bewinner and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Chongqing Changan
The main advantage of trading using opposite Beijing Bewinner and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Beijing Bewinner vs. Hygon Information Technology | Beijing Bewinner vs. Emdoor Information Co | Beijing Bewinner vs. Sublime China Information | Beijing Bewinner vs. Goodwill E Health |
| Chongqing Changan vs. Wonders Information | Chongqing Changan vs. AVCON Information Tech | Chongqing Changan vs. Emdoor Information Co | Chongqing Changan vs. Sichuan Hebang Biotechnology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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