Correlation Between Beijing Bewinner and Jizhong Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Bewinner Communications and Jizhong Energy Resources, you can compare the effects of market volatilities on Beijing Bewinner and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Jizhong Energy.
Diversification Opportunities for Beijing Bewinner and Jizhong Energy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Jizhong is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Jizhong Energy go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Jizhong Energy
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 3.18 times more return on investment than Jizhong Energy. However, Beijing Bewinner is 3.18 times more volatile than Jizhong Energy Resources. It trades about 0.03 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.15 per unit of risk. If you would invest 661.00 in Beijing Bewinner Communications on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Beijing Bewinner Communications or generate 0.61% 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. Jizhong Energy Resources
Performance |
| Timeline |
| Beijing Bewinner Com |
| Jizhong Energy Resources |
Beijing Bewinner and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Jizhong Energy
The main advantage of trading using opposite Beijing Bewinner and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Beijing Bewinner vs. Shenzhen AV Display Co | Beijing Bewinner vs. Hangzhou Gisway Information | Beijing Bewinner vs. Sharetronic Data Technology | Beijing Bewinner vs. Invengo Information Technology |
| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital Medical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |