Correlation Between Beijing Enlight and Xilong Chemical
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By analyzing existing cross correlation between Beijing Enlight Media and Xilong Chemical Co, you can compare the effects of market volatilities on Beijing Enlight and Xilong Chemical 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 Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Xilong Chemical.
Diversification Opportunities for Beijing Enlight and Xilong Chemical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Xilong is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical 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 Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Xilong Chemical go up and down completely randomly.
Pair Corralation between Beijing Enlight and Xilong Chemical
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.85 times more return on investment than Xilong Chemical. However, Beijing Enlight Media is 1.18 times less risky than Xilong Chemical. It trades about 0.03 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.02 per unit of risk. If you would invest 792.00 in Beijing Enlight Media on November 2, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Enlight Media or generate 20.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Xilong Chemical Co
Performance |
| Timeline |
| Beijing Enlight Media |
| Xilong Chemical |
Beijing Enlight and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Xilong Chemical
The main advantage of trading using opposite Beijing Enlight and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Beijing Enlight vs. Anhui Tongguan Copper | Beijing Enlight vs. Holitech Technology Co | Beijing Enlight vs. Zhengzhou Coal Mining | Beijing Enlight vs. Jinhe Biotechnology Co |
| Xilong Chemical vs. Zijin Mining Group | Xilong Chemical vs. Wanhua Chemical Group | Xilong Chemical vs. Baoshan Iron Steel | Xilong Chemical vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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