Correlation Between 159005 and Beijing Bashi
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By analyzing existing cross correlation between 159005 and Beijing Bashi Media, you can compare the effects of market volatilities on 159005 and Beijing Bashi 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 Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Beijing Bashi.
Diversification Opportunities for 159005 and Beijing Bashi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of 159005 i.e., 159005 and Beijing Bashi go up and down completely randomly.
Pair Corralation between 159005 and Beijing Bashi
Assuming the 90 days trading horizon 159005 is expected to generate 145.0 times less return on investment than Beijing Bashi. But when comparing it to its historical volatility, 159005 is 157.96 times less risky than Beijing Bashi. It trades about 0.21 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Beijing Bashi Media on September 13, 2024 and sell it today you would earn a total of 74.00 from holding Beijing Bashi Media or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Beijing Bashi Media
Performance |
| Timeline |
| 159005 |
| Beijing Bashi Media |
159005 and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Beijing Bashi
The main advantage of trading using opposite 159005 and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.The idea behind 159005 and Beijing Bashi Media 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 Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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