Correlation Between Beijing SPC and Hefei Metalforming
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By analyzing existing cross correlation between Beijing SPC Environment and Hefei Metalforming Mach, you can compare the effects of market volatilities on Beijing SPC and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Hefei Metalforming.
Diversification Opportunities for Beijing SPC and Hefei Metalforming
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Hefei is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Beijing SPC i.e., Beijing SPC and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Beijing SPC and Hefei Metalforming
Assuming the 90 days trading horizon Beijing SPC Environment is expected to generate 0.75 times more return on investment than Hefei Metalforming. However, Beijing SPC Environment is 1.34 times less risky than Hefei Metalforming. It trades about -0.07 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about -0.2 per unit of risk. If you would invest 420.00 in Beijing SPC Environment on September 27, 2024 and sell it today you would lose (13.00) from holding Beijing SPC Environment or give up 3.1% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Beijing SPC Environment |
| Hefei Metalforming Mach |
Beijing SPC and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Hefei Metalforming
The main advantage of trading using opposite Beijing SPC and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Beijing SPC vs. Kweichow Moutai Co | Beijing SPC vs. Contemporary Amperex Technology | Beijing SPC vs. G bits Network Technology | Beijing SPC vs. BYD Co Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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