Correlation Between Beijing Bewinner and Hua Xia
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By analyzing existing cross correlation between Beijing Bewinner Communications and Hua Xia Bank, you can compare the effects of market volatilities on Beijing Bewinner and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Hua Xia.
Diversification Opportunities for Beijing Bewinner and Hua Xia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Hua is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Hua Xia go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Hua Xia
Assuming the 90 days trading horizon Beijing Bewinner is expected to generate 1.73 times less return on investment than Hua Xia. In addition to that, Beijing Bewinner is 2.42 times more volatile than Hua Xia Bank. It trades about 0.02 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.07 per unit of volatility. If you would invest 529.00 in Hua Xia Bank on October 16, 2024 and sell it today you would earn a total of 214.00 from holding Hua Xia Bank or generate 40.45% 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. Hua Xia Bank
Performance |
| Timeline |
| Beijing Bewinner Com |
| Hua Xia Bank |
Beijing Bewinner and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Hua Xia
The main advantage of trading using opposite Beijing Bewinner and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Beijing Bewinner vs. Xinhua Winshare Publishing | Beijing Bewinner vs. Shenyang Chemical Industry | Beijing Bewinner vs. Dosilicon Co | Beijing Bewinner vs. Zhejiang Publishing Media |
| Hua Xia vs. Beijing Bewinner Communications | Hua Xia vs. Tongyu Communication | Hua Xia vs. Bus Online Co | Hua Xia vs. Guangzhou Haige Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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