Correlation Between Beijing UniStrong and Hang Xiao
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By analyzing existing cross correlation between Beijing UniStrong Science and Hang Xiao Steel, you can compare the effects of market volatilities on Beijing UniStrong and Hang Xiao 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 UniStrong with a short position of Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing UniStrong and Hang Xiao.
Diversification Opportunities for Beijing UniStrong and Hang Xiao
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Hang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Beijing UniStrong Science and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel and Beijing UniStrong 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 UniStrong Science are associated (or correlated) with Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Beijing UniStrong i.e., Beijing UniStrong and Hang Xiao go up and down completely randomly.
Pair Corralation between Beijing UniStrong and Hang Xiao
Assuming the 90 days trading horizon Beijing UniStrong Science is expected to generate 1.65 times more return on investment than Hang Xiao. However, Beijing UniStrong is 1.65 times more volatile than Hang Xiao Steel. It trades about 0.33 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.07 per unit of risk. If you would invest 891.00 in Beijing UniStrong Science on September 17, 2024 and sell it today you would earn a total of 243.00 from holding Beijing UniStrong Science or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing UniStrong Science vs. Hang Xiao Steel
Performance |
| Timeline |
| Beijing UniStrong Science |
| Hang Xiao Steel |
Beijing UniStrong and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing UniStrong and Hang Xiao
The main advantage of trading using opposite Beijing UniStrong and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing UniStrong position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Beijing UniStrong vs. Hang Xiao Steel | Beijing UniStrong vs. Bloomage Biotechnology Corp | Beijing UniStrong vs. Changjiang Jinggong Steel | Beijing UniStrong vs. Dynagreen Environmental Protection |
| Hang Xiao vs. Nanjing Putian Telecommunications | Hang Xiao vs. Tianjin Realty Development | Hang Xiao vs. Kangyue Technology Co | Hang Xiao vs. Shenzhen Hifuture Electric |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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