Correlation Between Beijing Bewinner and New China
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By analyzing existing cross correlation between Beijing Bewinner Communications and New China Life, you can compare the effects of market volatilities on Beijing Bewinner and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and New China.
Diversification Opportunities for Beijing Bewinner and New China
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and New is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and New China go up and down completely randomly.
Pair Corralation between Beijing Bewinner and New China
Assuming the 90 days trading horizon Beijing Bewinner is expected to generate 1.42 times less return on investment than New China. In addition to that, Beijing Bewinner is 1.14 times more volatile than New China Life. It trades about 0.07 of its total potential returns per unit of risk. New China Life is currently generating about 0.11 per unit of volatility. If you would invest 3,249 in New China Life on September 3, 2024 and sell it today you would earn a total of 1,487 from holding New China Life or generate 45.77% 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. New China Life
Performance |
| Timeline |
| Beijing Bewinner Com |
| New China Life |
Beijing Bewinner and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and New China
The main advantage of trading using opposite Beijing Bewinner and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Beijing Bewinner vs. Time Publishing and | Beijing Bewinner vs. Beijing Sanyuan Foods | Beijing Bewinner vs. Northern United Publishing | Beijing Bewinner vs. Anji Foodstuff Co |
| New China vs. Dongguan Tarry Electronics | New China vs. TongFu Microelectronics Co | New China vs. Tibet Huayu Mining | New China vs. JCHX Mining Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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