Correlation Between Beingmate Baby and China Construction
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By analyzing existing cross correlation between Beingmate Baby Child and China Construction Bank, you can compare the effects of market volatilities on Beingmate Baby and China Construction 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 Beingmate Baby with a short position of China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beingmate Baby and China Construction.
Diversification Opportunities for Beingmate Baby and China Construction
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beingmate and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beingmate Baby Child and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank and Beingmate Baby 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 Beingmate Baby Child are associated (or correlated) with China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Beingmate Baby i.e., Beingmate Baby and China Construction go up and down completely randomly.
Pair Corralation between Beingmate Baby and China Construction
Assuming the 90 days trading horizon Beingmate Baby Child is expected to generate 1.59 times more return on investment than China Construction. However, Beingmate Baby is 1.59 times more volatile than China Construction Bank. It trades about 0.15 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.13 per unit of risk. If you would invest 385.00 in Beingmate Baby Child on November 7, 2024 and sell it today you would earn a total of 22.00 from holding Beingmate Baby Child or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beingmate Baby Child vs. China Construction Bank
Performance |
| Timeline |
| Beingmate Baby Child |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Construction Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Beingmate Baby and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beingmate Baby and China Construction
The main advantage of trading using opposite Beingmate Baby and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beingmate Baby position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.The idea behind Beingmate Baby Child and China Construction Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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