Correlation Between Beijing Bewinner and Xinjiang Communications
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By analyzing existing cross correlation between Beijing Bewinner Communications and Xinjiang Communications Construction, you can compare the effects of market volatilities on Beijing Bewinner and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Xinjiang Communications.
Diversification Opportunities for Beijing Bewinner and Xinjiang Communications
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Xinjiang Communications
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 0.95 times more return on investment than Xinjiang Communications. However, Beijing Bewinner Communications is 1.05 times less risky than Xinjiang Communications. It trades about 0.18 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.15 per unit of risk. If you would invest 459.00 in Beijing Bewinner Communications on September 2, 2024 and sell it today you would earn a total of 175.00 from holding Beijing Bewinner Communications or generate 38.13% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Beijing Bewinner Com |
| Xinjiang Communications |
Beijing Bewinner and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Xinjiang Communications
The main advantage of trading using opposite Beijing Bewinner and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Beijing Bewinner vs. New China Life | Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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