Correlation Between Oriental Times and Beijing Bashi
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By analyzing existing cross correlation between Oriental Times Media and Beijing Bashi Media, you can compare the effects of market volatilities on Oriental Times and Beijing Bashi 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 Oriental Times with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Beijing Bashi.
Diversification Opportunities for Oriental Times and Beijing Bashi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oriental and Beijing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media and Oriental Times 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 Oriental Times Media are associated (or correlated) with Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Oriental Times i.e., Oriental Times and Beijing Bashi go up and down completely randomly.
Pair Corralation between Oriental Times and Beijing Bashi
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 2.52 times more return on investment than Beijing Bashi. However, Oriental Times is 2.52 times more volatile than Beijing Bashi Media. It trades about 0.43 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.02 per unit of risk. If you would invest 253.00 in Oriental Times Media on August 29, 2024 and sell it today you would earn a total of 178.00 from holding Oriental Times Media or generate 70.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Beijing Bashi Media
Performance |
| Timeline |
| Oriental Times Media |
| Beijing Bashi Media |
Oriental Times and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Beijing Bashi
The main advantage of trading using opposite Oriental Times and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi's long position.| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
| Beijing Bashi vs. Runjian Communication Co | Beijing Bashi vs. Cowealth Medical China | Beijing Bashi vs. CICT Mobile Communication | Beijing Bashi vs. Hengkang Medical Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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