Correlation Between Chengdu Spaceon and Beijing Bewinner
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Beijing Bewinner Communications, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Beijing Bewinner.
Diversification Opportunities for Chengdu Spaceon and Beijing Bewinner
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Beijing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Beijing Bewinner
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 7.04 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.26 times less risky than Beijing Bewinner. It trades about 0.01 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Beijing Bewinner Communications on November 29, 2024 and sell it today you would earn a total of 188.00 from holding Beijing Bewinner Communications or generate 30.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Beijing Bewinner Com |
Chengdu Spaceon and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Beijing Bewinner
The main advantage of trading using opposite Chengdu Spaceon and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Jiangsu Broadcasting Cable | Chengdu Spaceon vs. Shaanxi Broadcast TV | Chengdu Spaceon vs. Longjian Road Bridge | Chengdu Spaceon vs. Dazhong Transportation Group |
| Beijing Bewinner vs. Pengxin International Mining | Beijing Bewinner vs. Changchun Engley Automobile | Beijing Bewinner vs. Yindu Kitchen Equipment | Beijing Bewinner vs. Marssenger Kitchenware Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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