Correlation Between Beijing Bewinner and Shenzhen
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By analyzing existing cross correlation between Beijing Bewinner Communications and Shenzhen AV Display Co, you can compare the effects of market volatilities on Beijing Bewinner and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Shenzhen.
Diversification Opportunities for Beijing Bewinner and Shenzhen
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shenzhen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Shenzhen go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Shenzhen
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.61 times more return on investment than Shenzhen. However, Beijing Bewinner is 1.61 times more volatile than Shenzhen AV Display Co. It trades about 0.25 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.19 per unit of risk. If you would invest 577.00 in Beijing Bewinner Communications on November 5, 2024 and sell it today you would earn a total of 88.00 from holding Beijing Bewinner Communications or generate 15.25% 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. Shenzhen AV Display Co
Performance |
| Timeline |
| Beijing Bewinner Com |
| Shenzhen AV Display |
Beijing Bewinner and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Shenzhen
The main advantage of trading using opposite Beijing Bewinner and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 | Beijing Bewinner vs. Loctek Ergonomic Technology |
| Shenzhen vs. Xiangyang Automobile Bearing | Shenzhen vs. Chengdu Spaceon Electronics | Shenzhen vs. Chongqing Changan Automobile | Shenzhen vs. Guangzhou Automobile Group |
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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