Correlation Between Blue Sail and Beijing Wandong
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By analyzing existing cross correlation between Blue Sail Medical and Beijing Wandong Medical, you can compare the effects of market volatilities on Blue Sail and Beijing Wandong 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 Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Beijing Wandong.
Diversification Opportunities for Blue Sail and Beijing Wandong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blue and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Blue Sail i.e., Blue Sail and Beijing Wandong go up and down completely randomly.
Pair Corralation between Blue Sail and Beijing Wandong
Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Beijing Wandong. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 1.55 times less risky than Beijing Wandong. The stock trades about -0.05 of its potential returns per unit of risk. The Beijing Wandong Medical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,497 in Beijing Wandong Medical on August 29, 2024 and sell it today you would earn a total of 184.00 from holding Beijing Wandong Medical or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Beijing Wandong Medical
Performance |
| Timeline |
| Blue Sail Medical |
| Beijing Wandong Medical |
Blue Sail and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Beijing Wandong
The main advantage of trading using opposite Blue Sail and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Beijing Wandong 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 Wandong will offset losses from the drop in Beijing Wandong's long position.| Blue Sail vs. Industrial and Commercial | Blue Sail vs. China Construction Bank | Blue Sail vs. Agricultural Bank of | Blue Sail vs. Bank of China |
| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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