Correlation Between Beijing Enlight and Zhongshan Public
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By analyzing existing cross correlation between Beijing Enlight Media and Zhongshan Public Utilities, you can compare the effects of market volatilities on Beijing Enlight and Zhongshan Public 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 Enlight with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Zhongshan Public.
Diversification Opportunities for Beijing Enlight and Zhongshan Public
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Zhongshan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Beijing Enlight 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 Enlight Media are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Zhongshan Public go up and down completely randomly.
Pair Corralation between Beijing Enlight and Zhongshan Public
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.37 times more return on investment than Zhongshan Public. However, Beijing Enlight is 1.37 times more volatile than Zhongshan Public Utilities. It trades about 0.41 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.14 per unit of risk. If you would invest 853.00 in Beijing Enlight Media on November 5, 2024 and sell it today you would earn a total of 100.00 from holding Beijing Enlight Media or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Beijing Enlight Media |
| Zhongshan Public Uti |
Beijing Enlight and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Zhongshan Public
The main advantage of trading using opposite Beijing Enlight and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Beijing Enlight vs. Guangdong Jinma Entertainment | Beijing Enlight vs. Hengdian Entertainment Co | Beijing Enlight vs. Duzhe Publishing Media | Beijing Enlight vs. Kontour Medical Technology |
| Zhongshan Public vs. Xiandai Investment Co | Zhongshan Public vs. Shenyang Blue Silver | Zhongshan Public vs. Tianjin Silvery Dragon | Zhongshan Public vs. Jiangsu Yueda Investment |
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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