Correlation Between Beijing Bewinner and Xiangyang Automobile
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By analyzing existing cross correlation between Beijing Bewinner Communications and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Beijing Bewinner and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Xiangyang Automobile.
Diversification Opportunities for Beijing Bewinner and Xiangyang Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Xiangyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Xiangyang Automobile
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 0.79 times more return on investment than Xiangyang Automobile. However, Beijing Bewinner Communications is 1.27 times less risky than Xiangyang Automobile. It trades about 0.16 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.01 per unit of risk. If you would invest 583.00 in Beijing Bewinner Communications on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Beijing Bewinner Communications or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Beijing Bewinner Com |
| Xiangyang Automobile |
Beijing Bewinner and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Xiangyang Automobile
The main advantage of trading using opposite Beijing Bewinner and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Beijing Bewinner vs. Time Publishing and | Beijing Bewinner vs. Beijing Sanyuan Foods | Beijing Bewinner vs. Northern United Publishing | Beijing Bewinner vs. Anji Foodstuff 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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