Correlation Between Beijing Bewinner and Xiamen Bank
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By analyzing existing cross correlation between Beijing Bewinner Communications and Xiamen Bank Co, you can compare the effects of market volatilities on Beijing Bewinner and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Xiamen Bank.
Diversification Opportunities for Beijing Bewinner and Xiamen Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Xiamen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Xiamen Bank go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Xiamen Bank
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to under-perform the Xiamen Bank. In addition to that, Beijing Bewinner is 3.0 times more volatile than Xiamen Bank Co. It trades about -0.48 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.3 per unit of volatility. If you would invest 567.00 in Xiamen Bank Co on October 16, 2024 and sell it today you would lose (47.00) from holding Xiamen Bank Co or give up 8.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Xiamen Bank Co
Performance |
| Timeline |
| Beijing Bewinner Com |
| Xiamen Bank |
Beijing Bewinner and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Xiamen Bank
The main advantage of trading using opposite Beijing Bewinner and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank'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 |
| Xiamen Bank vs. Beijing Bewinner Communications | Xiamen Bank vs. Ningbo Ligong Online | Xiamen Bank vs. Nanning Chemical Industry | Xiamen Bank vs. Xinxiang Chemical Fiber |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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