Correlation Between Beijing E and Success Electronics
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By analyzing existing cross correlation between Beijing E Hualu and Success Electronics, you can compare the effects of market volatilities on Beijing E and Success Electronics 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 E with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing E and Success Electronics.
Diversification Opportunities for Beijing E and Success Electronics
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Success is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing E Hualu and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and Beijing E 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 E Hualu are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Beijing E i.e., Beijing E and Success Electronics go up and down completely randomly.
Pair Corralation between Beijing E and Success Electronics
Assuming the 90 days trading horizon Beijing E Hualu is expected to generate 1.5 times more return on investment than Success Electronics. However, Beijing E is 1.5 times more volatile than Success Electronics. It trades about 0.03 of its potential returns per unit of risk. Success Electronics is currently generating about -0.04 per unit of risk. If you would invest 2,450 in Beijing E Hualu on August 28, 2024 and sell it today you would earn a total of 179.00 from holding Beijing E Hualu or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing E Hualu vs. Success Electronics
Performance |
| Timeline |
| Beijing E Hualu |
| Success Electronics |
Beijing E and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing E and Success Electronics
The main advantage of trading using opposite Beijing E and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing E position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Beijing E vs. Sportsoul Co Ltd | Beijing E vs. Hangzhou Weiguang Electronic | Beijing E vs. Unigroup Guoxin Microelectronics | Beijing E vs. Shanghai CEO Environmental |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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