Correlation Between Beijing HuaYuanYiTong and Zhejiang Publishing
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Zhejiang Publishing Media, you can compare the effects of market volatilities on Beijing HuaYuanYiTong and Zhejiang 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Zhejiang Publishing.
Diversification Opportunities for Beijing HuaYuanYiTong and Zhejiang Publishing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Zhejiang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Zhejiang Publishing
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to generate 1.27 times more return on investment than Zhejiang Publishing. However, Beijing HuaYuanYiTong is 1.27 times more volatile than Zhejiang Publishing Media. It trades about 0.2 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.0 per unit of risk. If you would invest 877.00 in Beijing HuaYuanYiTong Thermal on August 25, 2024 and sell it today you would earn a total of 279.00 from holding Beijing HuaYuanYiTong Thermal or generate 31.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Zhejiang Publishing Media |
Beijing HuaYuanYiTong and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Zhejiang Publishing
The main advantage of trading using opposite Beijing HuaYuanYiTong and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong position performs unexpectedly, Zhejiang 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Beijing HuaYuanYiTong vs. China Petroleum Chemical | Beijing HuaYuanYiTong vs. PetroChina Co Ltd | Beijing HuaYuanYiTong vs. China State Construction | Beijing HuaYuanYiTong vs. China Railway 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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