Correlation Between Nanjing Putian and BeiGene
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and BeiGene, you can compare the effects of market volatilities on Nanjing Putian and BeiGene 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 Nanjing Putian with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and BeiGene.
Diversification Opportunities for Nanjing Putian and BeiGene
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and BeiGene is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Nanjing Putian 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 Nanjing Putian Telecommunications are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and BeiGene go up and down completely randomly.
Pair Corralation between Nanjing Putian and BeiGene
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the BeiGene. In addition to that, Nanjing Putian is 1.7 times more volatile than BeiGene. It trades about -0.08 of its total potential returns per unit of risk. BeiGene is currently generating about -0.1 per unit of volatility. If you would invest 17,573 in BeiGene on September 14, 2024 and sell it today you would lose (1,207) from holding BeiGene or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. BeiGene
Performance |
| Timeline |
| Nanjing Putian Telec |
| BeiGene |
Nanjing Putian and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and BeiGene
The main advantage of trading using opposite Nanjing Putian and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
| BeiGene vs. Great Sun Foods Co | BeiGene vs. Nanjing Putian Telecommunications | BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Eastroc Beverage Group |
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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