Correlation Between Beijing Lanxum and Thinkingdom Media
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By analyzing existing cross correlation between Beijing Lanxum Tech and Thinkingdom Media Group, you can compare the effects of market volatilities on Beijing Lanxum and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Lanxum and Thinkingdom Media.
Diversification Opportunities for Beijing Lanxum and Thinkingdom Media
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Thinkingdom is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Lanxum Tech and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Beijing Lanxum i.e., Beijing Lanxum and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Beijing Lanxum and Thinkingdom Media
Assuming the 90 days trading horizon Beijing Lanxum Tech is expected to generate 1.75 times more return on investment than Thinkingdom Media. However, Beijing Lanxum is 1.75 times more volatile than Thinkingdom Media Group. It trades about 0.07 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.03 per unit of risk. If you would invest 387.00 in Beijing Lanxum Tech on September 5, 2024 and sell it today you would earn a total of 667.00 from holding Beijing Lanxum Tech or generate 172.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Lanxum Tech vs. Thinkingdom Media Group
Performance |
| Timeline |
| Beijing Lanxum Tech |
| Thinkingdom Media |
Beijing Lanxum and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Lanxum and Thinkingdom Media
The main advantage of trading using opposite Beijing Lanxum and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Lanxum position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Beijing Lanxum vs. Thinkingdom Media Group | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Beijing Yanjing Brewery | Beijing Lanxum vs. Shanghai Yaoji Playing |
| Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. 159681 | Thinkingdom Media vs. 159005 | Thinkingdom Media vs. 516220 |
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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