Correlation Between Beijing SPC and GreenTech Environmental
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By analyzing existing cross correlation between Beijing SPC Environment and GreenTech Environmental Co, you can compare the effects of market volatilities on Beijing SPC and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and GreenTech Environmental.
Diversification Opportunities for Beijing SPC and GreenTech Environmental
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and GreenTech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Beijing SPC i.e., Beijing SPC and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Beijing SPC and GreenTech Environmental
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.62 times less risky than GreenTech Environmental. The stock trades about -0.02 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,739 in GreenTech Environmental Co on September 12, 2024 and sell it today you would lose (169.00) from holding GreenTech Environmental Co or give up 9.72% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Beijing SPC Environment |
| GreenTech Environmental |
Beijing SPC and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and GreenTech Environmental
The main advantage of trading using opposite Beijing SPC and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Shandong Mining Machinery | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. BlueFocus Communication Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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