Correlation Between Beijing Quanshi and Hengdian Entertainment
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By analyzing existing cross correlation between Beijing Quanshi World and Hengdian Entertainment Co, you can compare the effects of market volatilities on Beijing Quanshi and Hengdian Entertainment 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 Quanshi with a short position of Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Quanshi and Hengdian Entertainment.
Diversification Opportunities for Beijing Quanshi and Hengdian Entertainment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Hengdian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Quanshi World and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment and Beijing Quanshi 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 Quanshi World are associated (or correlated) with Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Beijing Quanshi i.e., Beijing Quanshi and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Beijing Quanshi and Hengdian Entertainment
Assuming the 90 days trading horizon Beijing Quanshi World is expected to under-perform the Hengdian Entertainment. In addition to that, Beijing Quanshi is 1.58 times more volatile than Hengdian Entertainment Co. It trades about -0.15 of its total potential returns per unit of risk. Hengdian Entertainment Co is currently generating about -0.03 per unit of volatility. If you would invest 1,483 in Hengdian Entertainment Co on October 23, 2024 and sell it today you would lose (44.00) from holding Hengdian Entertainment Co or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Beijing Quanshi World vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Beijing Quanshi World |
| Hengdian Entertainment |
Beijing Quanshi and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Quanshi and Hengdian Entertainment
The main advantage of trading using opposite Beijing Quanshi and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Quanshi position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| Beijing Quanshi vs. Shenzhen SDG Information | Beijing Quanshi vs. Ningxia Building Materials | Beijing Quanshi vs. Dawning Information Industry | Beijing Quanshi vs. Guangdong Qunxing Toys |
| Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Kweichow Moutai Co | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. China Mobile Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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