Correlation Between HeNan Splendor and Beijing Enlight
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By analyzing existing cross correlation between HeNan Splendor Science and Beijing Enlight Media, you can compare the effects of market volatilities on HeNan Splendor and Beijing Enlight 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 HeNan Splendor with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Beijing Enlight.
Diversification Opportunities for HeNan Splendor and Beijing Enlight
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeNan and Beijing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Beijing Enlight go up and down completely randomly.
Pair Corralation between HeNan Splendor and Beijing Enlight
Assuming the 90 days trading horizon HeNan Splendor is expected to generate 1.07 times less return on investment than Beijing Enlight. In addition to that, HeNan Splendor is 1.39 times more volatile than Beijing Enlight Media. It trades about 0.03 of its total potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.05 per unit of volatility. If you would invest 801.00 in Beijing Enlight Media on October 14, 2024 and sell it today you would earn a total of 46.00 from holding Beijing Enlight Media or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Beijing Enlight Media
Performance |
| Timeline |
| HeNan Splendor Science |
| Beijing Enlight Media |
HeNan Splendor and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Beijing Enlight
The main advantage of trading using opposite HeNan Splendor and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| HeNan Splendor vs. Linewell Software Co | HeNan Splendor vs. Holitech Technology Co | HeNan Splendor vs. Dymatic Chemicals | HeNan Splendor vs. Shandong Rike Chemical |
| Beijing Enlight vs. Xiamen Bank Co | Beijing Enlight vs. Zhejiang Construction Investment | Beijing Enlight vs. HeNan Splendor Science | Beijing Enlight vs. Lecron Energy Saving |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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