Correlation Between Bingshan Refrigeration and China Asset
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bingshan Refrigeration and and China Asset Management, you can compare the effects of market volatilities on Bingshan Refrigeration and China Asset 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 Bingshan Refrigeration with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingshan Refrigeration and China Asset.
Diversification Opportunities for Bingshan Refrigeration and China Asset
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bingshan and China is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bingshan Refrigeration and and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Bingshan Refrigeration 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 Bingshan Refrigeration and are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Bingshan Refrigeration i.e., Bingshan Refrigeration and China Asset go up and down completely randomly.
Pair Corralation between Bingshan Refrigeration and China Asset
Assuming the 90 days trading horizon Bingshan Refrigeration is expected to generate 5.86 times less return on investment than China Asset. In addition to that, Bingshan Refrigeration is 1.51 times more volatile than China Asset Management. It trades about 0.04 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.39 per unit of volatility. If you would invest 365.00 in China Asset Management on November 3, 2024 and sell it today you would earn a total of 31.00 from holding China Asset Management or generate 8.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bingshan Refrigeration and vs. China Asset Management
Performance |
Timeline |
Bingshan Refrigeration |
China Asset Management |
Bingshan Refrigeration and China Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bingshan Refrigeration and China Asset
The main advantage of trading using opposite Bingshan Refrigeration and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingshan Refrigeration position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.The idea behind Bingshan Refrigeration and and China Asset Management 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.
China Asset vs. Wonders Information | China Asset vs. Western Mining Co | China Asset vs. Hygon Information Technology | China Asset vs. JCHX Mining Management |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |