Correlation Between Songz Automobile and Beijing Bewinner
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By analyzing existing cross correlation between Songz Automobile Air and Beijing Bewinner Communications, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Beijing Bewinner.
Diversification Opportunities for Songz Automobile and Beijing Bewinner
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Songz Automobile and Beijing Bewinner
Assuming the 90 days trading horizon Songz Automobile is expected to generate 4.58 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Songz Automobile Air is 1.28 times less risky than Beijing Bewinner. It trades about 0.01 of its potential returns per unit of risk. 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 |
Songz Automobile Air vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Songz Automobile Air |
| Beijing Bewinner Com |
Songz Automobile and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Beijing Bewinner
The main advantage of trading using opposite Songz Automobile and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. PetroChina Co Ltd | Songz Automobile vs. China Mobile Limited | Songz Automobile vs. Industrial and Commercial | Songz Automobile vs. China Life Insurance |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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