Correlation Between Beijing Bewinner and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Beijing Bewinner Communications and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Beijing Bewinner and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Shenzhen Zhongzhuang.
Diversification Opportunities for Beijing Bewinner and Shenzhen Zhongzhuang
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.42 times more return on investment than Shenzhen Zhongzhuang. However, Beijing Bewinner is 1.42 times more volatile than Shenzhen Zhongzhuang Construction. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about -0.03 per unit of risk. If you would invest 634.00 in Beijing Bewinner Communications on October 30, 2024 and sell it today you would earn a total of 31.00 from holding Beijing Bewinner Communications or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Beijing Bewinner Com |
| Shenzhen Zhongzhuang |
Beijing Bewinner and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Shenzhen Zhongzhuang
The main advantage of trading using opposite Beijing Bewinner and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Beijing Bewinner vs. Bosera CMSK Industrial | Beijing Bewinner vs. Western Metal Materials | Beijing Bewinner vs. Pengxin International Mining | Beijing Bewinner vs. Jiangsu Jinling Sports |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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