Correlation Between Shandong Ruifeng and Beijing Bashi
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Beijing Bashi Media, you can compare the effects of market volatilities on Shandong Ruifeng and Beijing Bashi 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 Shandong Ruifeng with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Beijing Bashi.
Diversification Opportunities for Shandong Ruifeng and Beijing Bashi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Beijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media and Shandong Ruifeng 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 Shandong Ruifeng Chemical are associated (or correlated) with Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Shandong Ruifeng i.e., Shandong Ruifeng and Beijing Bashi go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Beijing Bashi
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to under-perform the Beijing Bashi. In addition to that, Shandong Ruifeng is 1.03 times more volatile than Beijing Bashi Media. It trades about -0.19 of its total potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.37 per unit of volatility. If you would invest 420.00 in Beijing Bashi Media on September 4, 2024 and sell it today you would earn a total of 127.00 from holding Beijing Bashi Media or generate 30.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Beijing Bashi Media
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Beijing Bashi Media |
Shandong Ruifeng and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Beijing Bashi
The main advantage of trading using opposite Shandong Ruifeng and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| Shandong Ruifeng vs. CITIC Metal Co | Shandong Ruifeng vs. Shanghai Yanpu Metal | Shandong Ruifeng vs. Hangzhou Pinming Software | Shandong Ruifeng vs. Inspur Software Co |
| Beijing Bashi vs. Shanghai Rendu Biotechnology | Beijing Bashi vs. Suzhou Douson Drilling | Beijing Bashi vs. Anhui Gujing Distillery | Beijing Bashi vs. Ningxia Younglight Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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