Correlation Between Blue Sail and Beijing Lier
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By analyzing existing cross correlation between Blue Sail Medical and Beijing Lier High, you can compare the effects of market volatilities on Blue Sail and Beijing Lier 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 Blue Sail with a short position of Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Beijing Lier.
Diversification Opportunities for Blue Sail and Beijing Lier
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blue and Beijing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Blue Sail i.e., Blue Sail and Beijing Lier go up and down completely randomly.
Pair Corralation between Blue Sail and Beijing Lier
Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Beijing Lier. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 1.74 times less risky than Beijing Lier. The stock trades about -0.39 of its potential returns per unit of risk. The Beijing Lier High is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Beijing Lier High on October 20, 2024 and sell it today you would lose (59.00) from holding Beijing Lier High or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Beijing Lier High
Performance |
| Timeline |
| Blue Sail Medical |
| Beijing Lier High |
Blue Sail and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Beijing Lier
The main advantage of trading using opposite Blue Sail and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Beijing Lier 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 Lier will offset losses from the drop in Beijing Lier's long position.| Blue Sail vs. Beijing Bewinner Communications | Blue Sail vs. Jilin Jlu Communication | Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. China Mobile Limited |
| Beijing Lier vs. Zijin Mining Group | Beijing Lier vs. Wanhua Chemical Group | Beijing Lier vs. Baoshan Iron Steel | Beijing Lier vs. Shandong Gold Mining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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