Correlation Between Huizhou Desay and Beijing Bewinner
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By analyzing existing cross correlation between Huizhou Desay SV and Beijing Bewinner Communications, you can compare the effects of market volatilities on Huizhou Desay and Beijing Bewinner 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 Huizhou Desay with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huizhou Desay and Beijing Bewinner.
Diversification Opportunities for Huizhou Desay and Beijing Bewinner
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huizhou and Beijing is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Huizhou Desay SV and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Huizhou Desay 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 Huizhou Desay SV are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Huizhou Desay i.e., Huizhou Desay and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Huizhou Desay and Beijing Bewinner
Assuming the 90 days trading horizon Huizhou Desay SV is expected to generate 0.52 times more return on investment than Beijing Bewinner. However, Huizhou Desay SV is 1.93 times less risky than Beijing Bewinner. It trades about -0.22 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about -0.47 per unit of risk. If you would invest 11,500 in Huizhou Desay SV on October 16, 2024 and sell it today you would lose (1,133) from holding Huizhou Desay SV or give up 9.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huizhou Desay SV vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Huizhou Desay SV |
| Beijing Bewinner Com |
Huizhou Desay and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huizhou Desay and Beijing Bewinner
The main advantage of trading using opposite Huizhou Desay and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huizhou Desay position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Huizhou Desay vs. Beijing Bewinner Communications | Huizhou Desay vs. Inspur Software Co | Huizhou Desay vs. Glodon Software Co | Huizhou Desay vs. Guotai Epoint Software |
| Beijing Bewinner vs. Hygon Information Technology | Beijing Bewinner vs. Emdoor Information Co | Beijing Bewinner vs. Sublime China Information | Beijing Bewinner vs. Goodwill E Health |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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