Correlation Between Guangzhou Jinyi and BeiGene
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By analyzing existing cross correlation between Guangzhou Jinyi Media and BeiGene, you can compare the effects of market volatilities on Guangzhou Jinyi and BeiGene 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 Guangzhou Jinyi with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and BeiGene.
Diversification Opportunities for Guangzhou Jinyi and BeiGene
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and BeiGene is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Guangzhou Jinyi 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 Guangzhou Jinyi Media are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Guangzhou Jinyi i.e., Guangzhou Jinyi and BeiGene go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and BeiGene
Assuming the 90 days trading horizon Guangzhou Jinyi is expected to generate 6.91 times less return on investment than BeiGene. In addition to that, Guangzhou Jinyi is 1.63 times more volatile than BeiGene. It trades about 0.03 of its total potential returns per unit of risk. BeiGene is currently generating about 0.33 per unit of volatility. If you would invest 16,100 in BeiGene on October 24, 2024 and sell it today you would earn a total of 2,878 from holding BeiGene or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. BeiGene
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| BeiGene |
Guangzhou Jinyi and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and BeiGene
The main advantage of trading using opposite Guangzhou Jinyi and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Guangzhou Jinyi vs. Zhejiang Qianjiang Motorcycle | Guangzhou Jinyi vs. Chongqing Changan Automobile | Guangzhou Jinyi vs. Chinese Universe Publishing | Guangzhou Jinyi vs. Southern PublishingMedia Co |
| BeiGene vs. Fibocom Wireless | BeiGene vs. Beijing Kingsoft Office | BeiGene vs. Southern PublishingMedia Co | BeiGene vs. Guangzhou Jinyi Media |
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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