Correlation Between Beijing Bewinner and Shanghai CEO
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By analyzing existing cross correlation between Beijing Bewinner Communications and Shanghai CEO Environmental, you can compare the effects of market volatilities on Beijing Bewinner and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Shanghai CEO.
Diversification Opportunities for Beijing Bewinner and Shanghai CEO
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Shanghai is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Shanghai CEO go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Shanghai CEO
Assuming the 90 days trading horizon Beijing Bewinner is expected to generate 29.6 times less return on investment than Shanghai CEO. But when comparing it to its historical volatility, Beijing Bewinner Communications is 15.4 times less risky than Shanghai CEO. It trades about 0.02 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,161 in Shanghai CEO Environmental on October 16, 2024 and sell it today you would lose (1,304) from holding Shanghai CEO Environmental or give up 60.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Beijing Bewinner Com |
| Shanghai CEO Environ |
Beijing Bewinner and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Shanghai CEO
The main advantage of trading using opposite Beijing Bewinner and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Beijing Bewinner vs. Hygon Information Technology | Beijing Bewinner vs. Emdoor Information Co | Beijing Bewinner vs. Sublime China Information | Beijing Bewinner vs. Goodwill E Health |
| Shanghai CEO vs. Chahua Modern Housewares | Shanghai CEO vs. Threes Company Media | Shanghai CEO vs. Fujian Longzhou Transportation | Shanghai CEO vs. Marssenger Kitchenware 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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