Correlation Between 159005 and Beijing Topnew
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By analyzing existing cross correlation between 159005 and Beijing Topnew Info, you can compare the effects of market volatilities on 159005 and Beijing Topnew 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 159005 with a short position of Beijing Topnew. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Beijing Topnew.
Diversification Opportunities for 159005 and Beijing Topnew
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Beijing is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Beijing Topnew Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Topnew Info and 159005 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 159005 are associated (or correlated) with Beijing Topnew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Topnew Info has no effect on the direction of 159005 i.e., 159005 and Beijing Topnew go up and down completely randomly.
Pair Corralation between 159005 and Beijing Topnew
Assuming the 90 days trading horizon 159005 is expected to generate 67.93 times less return on investment than Beijing Topnew. But when comparing it to its historical volatility, 159005 is 144.43 times less risky than Beijing Topnew. It trades about 0.2 of its potential returns per unit of risk. Beijing Topnew Info is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,439 in Beijing Topnew Info on September 3, 2024 and sell it today you would earn a total of 1,079 from holding Beijing Topnew Info or generate 44.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Beijing Topnew Info
Performance |
| Timeline |
| 159005 |
| Beijing Topnew Info |
159005 and Beijing Topnew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Beijing Topnew
The main advantage of trading using opposite 159005 and Beijing Topnew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Beijing Topnew 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 Topnew will offset losses from the drop in Beijing Topnew's long position.The idea behind 159005 and Beijing Topnew Info pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beijing Topnew vs. Agricultural Bank of | Beijing Topnew vs. China Construction Bank | Beijing Topnew vs. Postal Savings Bank | Beijing Topnew vs. Bank of Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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