Correlation Between Sichuan Jinshi and Beijing Enlight
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Beijing Enlight Media, you can compare the effects of market volatilities on Sichuan Jinshi and Beijing Enlight 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 Sichuan Jinshi with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Beijing Enlight.
Diversification Opportunities for Sichuan Jinshi and Beijing Enlight
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and Beijing is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and Sichuan Jinshi 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 Sichuan Jinshi Technology are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Beijing Enlight go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Beijing Enlight
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 1.14 times more return on investment than Beijing Enlight. However, Sichuan Jinshi is 1.14 times more volatile than Beijing Enlight Media. It trades about 0.11 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.04 per unit of risk. If you would invest 644.00 in Sichuan Jinshi Technology on October 26, 2024 and sell it today you would earn a total of 34.00 from holding Sichuan Jinshi Technology or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Beijing Enlight Media
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Beijing Enlight Media |
Sichuan Jinshi and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Beijing Enlight
The main advantage of trading using opposite Sichuan Jinshi and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| Sichuan Jinshi vs. GreenTech Environmental Co | Sichuan Jinshi vs. Fujian Nanwang Environment | Sichuan Jinshi vs. Shenzhen MYS Environmental | Sichuan Jinshi vs. Heilongjiang Transport Development |
| Beijing Enlight vs. China State Construction | Beijing Enlight vs. Poly Real Estate | Beijing Enlight vs. China Vanke Co | Beijing Enlight vs. China Merchants Shekou |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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