Correlation Between Beijing Enlight and Zhonghong Pulin
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By analyzing existing cross correlation between Beijing Enlight Media and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Beijing Enlight and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Zhonghong Pulin.
Diversification Opportunities for Beijing Enlight and Zhonghong Pulin
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Zhonghong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Beijing Enlight and Zhonghong Pulin
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.02 times more return on investment than Zhonghong Pulin. However, Beijing Enlight is 1.02 times more volatile than Zhonghong Pulin Medical. It trades about 0.02 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.0 per unit of risk. If you would invest 833.00 in Beijing Enlight Media on October 16, 2024 and sell it today you would earn a total of 33.00 from holding Beijing Enlight Media or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Beijing Enlight Media |
| Zhonghong Pulin Medical |
Beijing Enlight and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Zhonghong Pulin
The main advantage of trading using opposite Beijing Enlight and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Beijing Enlight vs. Beijing Sanyuan Foods | Beijing Enlight vs. HaiXin Foods Co | Beijing Enlight vs. Shanghai Newtouch Software | Beijing Enlight vs. Guangdong Wens Foodstuff |
| Zhonghong Pulin vs. Guangdong Jinma Entertainment | Zhonghong Pulin vs. Beijing Enlight Media | Zhonghong Pulin vs. Heilongjiang Publishing Media | Zhonghong Pulin vs. Mango Excellent Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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