Correlation Between Beijing HuaYuanYiTong and Huadong Medicine
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Huadong Medicine Co, you can compare the effects of market volatilities on Beijing HuaYuanYiTong and Huadong Medicine 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 HuaYuanYiTong with a short position of Huadong Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Huadong Medicine.
Diversification Opportunities for Beijing HuaYuanYiTong and Huadong Medicine
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Huadong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Huadong Medicine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huadong Medicine and Beijing HuaYuanYiTong 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 HuaYuanYiTong Thermal are associated (or correlated) with Huadong Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huadong Medicine has no effect on the direction of Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Huadong Medicine go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Huadong Medicine
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to under-perform the Huadong Medicine. In addition to that, Beijing HuaYuanYiTong is 1.13 times more volatile than Huadong Medicine Co. It trades about -0.54 of its total potential returns per unit of risk. Huadong Medicine Co is currently generating about -0.33 per unit of volatility. If you would invest 3,676 in Huadong Medicine Co on October 14, 2024 and sell it today you would lose (413.00) from holding Huadong Medicine Co or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Huadong Medicine Co
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Huadong Medicine |
Beijing HuaYuanYiTong and Huadong Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Huadong Medicine
The main advantage of trading using opposite Beijing HuaYuanYiTong and Huadong Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong position performs unexpectedly, Huadong Medicine 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 Huadong Medicine will offset losses from the drop in Huadong Medicine's long position.| Beijing HuaYuanYiTong vs. CIMC Vehicles Co | Beijing HuaYuanYiTong vs. Qiaoyin Environmental Tech | Beijing HuaYuanYiTong vs. Dongfeng Automobile Co | Beijing HuaYuanYiTong vs. Guangdong Liantai Environmental |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |