Correlation Between Beijing HuaYuanYiTong and Shandong Publishing
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Shandong Publishing Media, you can compare the effects of market volatilities on Beijing HuaYuanYiTong and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Shandong Publishing.
Diversification Opportunities for Beijing HuaYuanYiTong and Shandong Publishing
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beijing and Shandong is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Shandong Publishing go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Shandong Publishing
Assuming the 90 days trading horizon Beijing HuaYuanYiTong is expected to generate 1.45 times less return on investment than Shandong Publishing. In addition to that, Beijing HuaYuanYiTong is 1.32 times more volatile than Shandong Publishing Media. It trades about 0.03 of its total potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.06 per unit of volatility. If you would invest 612.00 in Shandong Publishing Media on September 3, 2024 and sell it today you would earn a total of 453.00 from holding Shandong Publishing Media or generate 74.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Shandong Publishing Media
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Shandong Publishing Media |
Beijing HuaYuanYiTong and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Shandong Publishing
The main advantage of trading using opposite Beijing HuaYuanYiTong and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Beijing HuaYuanYiTong vs. Industrial and Commercial | Beijing HuaYuanYiTong vs. Agricultural Bank of | Beijing HuaYuanYiTong vs. China Construction Bank | Beijing HuaYuanYiTong vs. Bank of China |
| Shandong Publishing vs. Gansu Jiu Steel | Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. Aba Chemicals Corp | Shandong Publishing vs. Loctek Ergonomic Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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