Correlation Between Beijing SPC and Marssenger Kitchenware
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By analyzing existing cross correlation between Beijing SPC Environment and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Beijing SPC and Marssenger Kitchenware 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 SPC with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Marssenger Kitchenware.
Diversification Opportunities for Beijing SPC and Marssenger Kitchenware
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Marssenger is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Beijing SPC 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 SPC Environment are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Beijing SPC i.e., Beijing SPC and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Beijing SPC and Marssenger Kitchenware
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Marssenger Kitchenware. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.93 times less risky than Marssenger Kitchenware. The stock trades about -0.02 of its potential returns per unit of risk. The Marssenger Kitchenware Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,313 in Marssenger Kitchenware Co on September 12, 2024 and sell it today you would lose (649.00) from holding Marssenger Kitchenware Co or give up 28.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Beijing SPC Environment |
| Marssenger Kitchenware |
Beijing SPC and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Marssenger Kitchenware
The main advantage of trading using opposite Beijing SPC and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC vs. PetroChina Co Ltd |
| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. Gansu Jiu Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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