Correlation Between Beijing Lanxum and Beijing Enlight
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By analyzing existing cross correlation between Beijing Lanxum Tech and Beijing Enlight Media, you can compare the effects of market volatilities on Beijing Lanxum and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Lanxum and Beijing Enlight.
Diversification Opportunities for Beijing Lanxum and Beijing Enlight
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Beijing is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Lanxum Tech and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Beijing Lanxum i.e., Beijing Lanxum and Beijing Enlight go up and down completely randomly.
Pair Corralation between Beijing Lanxum and Beijing Enlight
Assuming the 90 days trading horizon Beijing Lanxum Tech is expected to generate 2.09 times more return on investment than Beijing Enlight. However, Beijing Lanxum is 2.09 times more volatile than Beijing Enlight Media. It trades about 0.14 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.05 per unit of risk. If you would invest 173.00 in Beijing Lanxum Tech on November 3, 2024 and sell it today you would earn a total of 605.00 from holding Beijing Lanxum Tech or generate 349.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Beijing Lanxum Tech vs. Beijing Enlight Media
Performance |
| Timeline |
| Beijing Lanxum Tech |
| Beijing Enlight Media |
Beijing Lanxum and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Lanxum and Beijing Enlight
The main advantage of trading using opposite Beijing Lanxum and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Lanxum position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| Beijing Lanxum vs. Xinjiang Baodi Mining | Beijing Lanxum vs. Sichuan Fulin Transportation | Beijing Lanxum vs. North Copper Shanxi | Beijing Lanxum vs. Heilongjiang Transport Development |
| Beijing Enlight vs. Holitech Technology Co | Beijing Enlight vs. Zhongrun Resources Investment | Beijing Enlight vs. Tongyu Communication | Beijing Enlight vs. Tieling Newcity Investment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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