Correlation Between Beijing Bewinner and Northern United
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By analyzing existing cross correlation between Beijing Bewinner Communications and Northern United Publishing, you can compare the effects of market volatilities on Beijing Bewinner and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Northern United.
Diversification Opportunities for Beijing Bewinner and Northern United
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Northern is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Northern United go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Northern United
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to under-perform the Northern United. In addition to that, Beijing Bewinner is 1.84 times more volatile than Northern United Publishing. It trades about -0.02 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.02 per unit of volatility. If you would invest 649.00 in Northern United Publishing on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Northern United Publishing or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Northern United Publishing
Performance |
| Timeline |
| Beijing Bewinner Com |
| Northern United Publ |
Beijing Bewinner and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Northern United
The main advantage of trading using opposite Beijing Bewinner and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Beijing Bewinner vs. Bosera CMSK Industrial | Beijing Bewinner vs. Western Metal Materials | Beijing Bewinner vs. Pengxin International Mining | Beijing Bewinner vs. Jiangsu Jinling Sports |
| Northern United vs. Shandong Hongchuang Aluminum | Northern United vs. Luyin Investment Group | Northern United vs. Hefei Metalforming Mach | Northern United vs. Sino Platinum Metals Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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