Correlation Between Beijing Bewinner and Changchun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Bewinner Communications and Changchun UP Optotech, you can compare the effects of market volatilities on Beijing Bewinner and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Changchun.
Diversification Opportunities for Beijing Bewinner and Changchun
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Changchun is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Changchun go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Changchun
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 2.59 times more return on investment than Changchun. However, Beijing Bewinner is 2.59 times more volatile than Changchun UP Optotech. It trades about -0.03 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.3 per unit of risk. If you would invest 661.00 in Beijing Bewinner Communications on October 11, 2024 and sell it today you would lose (45.00) from holding Beijing Bewinner Communications or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Changchun UP Optotech
Performance |
| Timeline |
| Beijing Bewinner Com |
| Changchun UP Optotech |
Beijing Bewinner and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Changchun
The main advantage of trading using opposite Beijing Bewinner and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Beijing Bewinner vs. Xiandai Investment Co | Beijing Bewinner vs. Anhui Transport Consulting | Beijing Bewinner vs. Sino Platinum Metals Co | Beijing Bewinner vs. Heilongjiang Transport Development |
| Changchun vs. Sinofibers Technology Co | Changchun vs. Cultural Investment Holdings | Changchun vs. Shanghai Material Trading | Changchun vs. Dhc Software 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |