Correlation Between INKON Life and Beijing Wantai
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By analyzing existing cross correlation between INKON Life Technology and Beijing Wantai Biological, you can compare the effects of market volatilities on INKON Life and Beijing Wantai 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 INKON Life with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Beijing Wantai.
Diversification Opportunities for INKON Life and Beijing Wantai
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INKON and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and INKON Life 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 INKON Life Technology are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of INKON Life i.e., INKON Life and Beijing Wantai go up and down completely randomly.
Pair Corralation between INKON Life and Beijing Wantai
Assuming the 90 days trading horizon INKON Life is expected to generate 8.41 times less return on investment than Beijing Wantai. In addition to that, INKON Life is 1.02 times more volatile than Beijing Wantai Biological. It trades about 0.01 of its total potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.07 per unit of volatility. If you would invest 4,830 in Beijing Wantai Biological on September 4, 2024 and sell it today you would earn a total of 2,700 from holding Beijing Wantai Biological or generate 55.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INKON Life Technology vs. Beijing Wantai Biological
Performance |
| Timeline |
| INKON Life Technology |
| Beijing Wantai Biological |
INKON Life and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INKON Life and Beijing Wantai
The main advantage of trading using opposite INKON Life and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| INKON Life vs. Shanghai Jinfeng Wine | INKON Life vs. Tonghua Grape Wine | INKON Life vs. ROPEOK Technology Group | INKON Life vs. Guangzhou Zhujiang Brewery |
| Beijing Wantai vs. Hubeiyichang Transportation Group | Beijing Wantai vs. Jiangsu Jinling Sports | Beijing Wantai vs. Sino Platinum Metals Co | Beijing Wantai vs. Qinghaihuading Industrial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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