Correlation Between Beijing Originwater and Ye Chiu
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By analyzing existing cross correlation between Beijing Originwater Technology and Ye Chiu Metal, you can compare the effects of market volatilities on Beijing Originwater and Ye Chiu 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 Originwater with a short position of Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Originwater and Ye Chiu.
Diversification Opportunities for Beijing Originwater and Ye Chiu
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and 601388 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Originwater Technology and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal and Beijing Originwater 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 Originwater Technology are associated (or correlated) with Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Beijing Originwater i.e., Beijing Originwater and Ye Chiu go up and down completely randomly.
Pair Corralation between Beijing Originwater and Ye Chiu
Assuming the 90 days trading horizon Beijing Originwater Technology is expected to generate 1.0 times more return on investment than Ye Chiu. However, Beijing Originwater is 1.0 times more volatile than Ye Chiu Metal. It trades about 0.03 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.01 per unit of risk. If you would invest 491.00 in Beijing Originwater Technology on September 3, 2024 and sell it today you would earn a total of 95.00 from holding Beijing Originwater Technology or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Originwater Technology vs. Ye Chiu Metal
Performance |
| Timeline |
| Beijing Originwater |
| Ye Chiu Metal |
Beijing Originwater and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Originwater and Ye Chiu
The main advantage of trading using opposite Beijing Originwater and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Originwater position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Beijing Originwater vs. Shuhua Sports Co | Beijing Originwater vs. Dareway Software Co | Beijing Originwater vs. Hangzhou Pinming Software | Beijing Originwater vs. Inspur Software Co |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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