Correlation Between Guangdong Shenglu and Beijing Bewinner
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Beijing Bewinner Communications, you can compare the effects of market volatilities on Guangdong Shenglu and Beijing Bewinner 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 Guangdong Shenglu with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Beijing Bewinner.
Diversification Opportunities for Guangdong Shenglu and Beijing Bewinner
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Beijing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Beijing Bewinner
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Beijing Bewinner. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.02 times less risky than Beijing Bewinner. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Bewinner Communications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Beijing Bewinner Communications on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Beijing Bewinner Communications or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Guangdong Shenglu |
| Beijing Bewinner Com |
Guangdong Shenglu and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Beijing Bewinner
The main advantage of trading using opposite Guangdong Shenglu and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Bank of Communications |
| Beijing Bewinner vs. Time Publishing and | Beijing Bewinner vs. Beijing Sanyuan Foods | Beijing Bewinner vs. Northern United Publishing | Beijing Bewinner vs. Anji Foodstuff Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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