Correlation Between Linzhou Heavy and Beijing Bewinner
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By analyzing existing cross correlation between Linzhou Heavy Machinery and Beijing Bewinner Communications, you can compare the effects of market volatilities on Linzhou Heavy 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 Linzhou Heavy with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linzhou Heavy and Beijing Bewinner.
Diversification Opportunities for Linzhou Heavy and Beijing Bewinner
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Linzhou and Beijing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Linzhou Heavy Machinery 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 Linzhou Heavy 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 Linzhou Heavy Machinery 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 Linzhou Heavy i.e., Linzhou Heavy and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Linzhou Heavy and Beijing Bewinner
Assuming the 90 days trading horizon Linzhou Heavy Machinery is expected to under-perform the Beijing Bewinner. But the stock apears to be less risky and, when comparing its historical volatility, Linzhou Heavy Machinery is 1.92 times less risky than Beijing Bewinner. The stock trades about 0.0 of its potential returns per unit of risk. The Beijing Bewinner Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 685.00 in Beijing Bewinner Communications on October 29, 2024 and sell it today you would earn a total of 12.00 from holding Beijing Bewinner Communications or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linzhou Heavy Machinery vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Linzhou Heavy Machinery |
| Beijing Bewinner Com |
Linzhou Heavy and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linzhou Heavy and Beijing Bewinner
The main advantage of trading using opposite Linzhou Heavy and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linzhou Heavy 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.| Linzhou Heavy vs. PetroChina Co Ltd | Linzhou Heavy vs. Industrial and Commercial | Linzhou Heavy vs. China Petroleum Chemical | Linzhou Heavy vs. China Construction Bank |
| Beijing Bewinner vs. Cicc Fund Management | Beijing Bewinner vs. Sanbo Hospital Management | Beijing Bewinner vs. Namchow Food Group | Beijing Bewinner vs. Xiangpiaopiao Food 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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