Correlation Between Beijing Enlight and Epoxy Base
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Enlight Media and Epoxy Base Electronic, you can compare the effects of market volatilities on Beijing Enlight and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Epoxy Base.
Diversification Opportunities for Beijing Enlight and Epoxy Base
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Epoxy is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Epoxy Base go up and down completely randomly.
Pair Corralation between Beijing Enlight and Epoxy Base
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.73 times more return on investment than Epoxy Base. However, Beijing Enlight Media is 1.38 times less risky than Epoxy Base. It trades about -0.25 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about -0.34 per unit of risk. If you would invest 979.00 in Beijing Enlight Media on October 11, 2024 and sell it today you would lose (104.00) from holding Beijing Enlight Media or give up 10.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Epoxy Base Electronic
Performance |
| Timeline |
| Beijing Enlight Media |
| Epoxy Base Electronic |
Beijing Enlight and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Epoxy Base
The main advantage of trading using opposite Beijing Enlight and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Beijing Enlight vs. China World Trade | Beijing Enlight vs. China National Software | Beijing Enlight vs. Sichuan Jinshi Technology | Beijing Enlight vs. Bank of Communications |
| Epoxy Base vs. Beijing Enlight Media | Epoxy Base vs. Shenzhen Noposion Agrochemicals | Epoxy Base vs. Ningxia Younglight Chemicals | Epoxy Base vs. Longxing Chemical Stock |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |