Correlation Between Beijing Lanxum and Shenzhen Silver
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By analyzing existing cross correlation between Beijing Lanxum Tech and Shenzhen Silver Basis, you can compare the effects of market volatilities on Beijing Lanxum and Shenzhen Silver 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 Lanxum with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Lanxum and Shenzhen Silver.
Diversification Opportunities for Beijing Lanxum and Shenzhen Silver
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Shenzhen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Lanxum Tech and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and Beijing Lanxum 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 Lanxum Tech are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Beijing Lanxum i.e., Beijing Lanxum and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Beijing Lanxum and Shenzhen Silver
Assuming the 90 days trading horizon Beijing Lanxum Tech is expected to generate 1.13 times more return on investment than Shenzhen Silver. However, Beijing Lanxum is 1.13 times more volatile than Shenzhen Silver Basis. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.04 per unit of risk. If you would invest 312.00 in Beijing Lanxum Tech on December 4, 2024 and sell it today you would earn a total of 457.00 from holding Beijing Lanxum Tech or generate 146.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Lanxum Tech vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Beijing Lanxum Tech |
| Shenzhen Silver Basis |
Beijing Lanxum and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Lanxum and Shenzhen Silver
The main advantage of trading using opposite Beijing Lanxum and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Lanxum position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Beijing Lanxum vs. Jason Furniture | Beijing Lanxum vs. DO Home Collection | Beijing Lanxum vs. Eyebright Medical Technology | Beijing Lanxum vs. Western Superconducting Tech |
| Shenzhen Silver vs. Zhejiang Kingland Pipeline | Shenzhen Silver vs. APT Medical | Shenzhen Silver vs. Western Metal Materials | Shenzhen Silver vs. Guangzhou Boji Medical |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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