Correlation Between Beijing Bewinner and Maoming Petro
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By analyzing existing cross correlation between Beijing Bewinner Communications and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Beijing Bewinner and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Maoming Petro.
Diversification Opportunities for Beijing Bewinner and Maoming Petro
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Maoming is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Maoming Petro go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Maoming Petro
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.51 times more return on investment than Maoming Petro. However, Beijing Bewinner is 1.51 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.02 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.02 per unit of risk. If you would invest 640.00 in Beijing Bewinner Communications on November 5, 2024 and sell it today you would earn a total of 25.00 from holding Beijing Bewinner Communications or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Beijing Bewinner Com |
| Maoming Petro Chemical |
Beijing Bewinner and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Maoming Petro
The main advantage of trading using opposite Beijing Bewinner and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 | Beijing Bewinner vs. Loctek Ergonomic Technology |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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