Correlation Between Beijing Enlight and Sichuan Hebang
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By analyzing existing cross correlation between Beijing Enlight Media and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Beijing Enlight and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Sichuan Hebang.
Diversification Opportunities for Beijing Enlight and Sichuan Hebang
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Sichuan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Beijing Enlight and Sichuan Hebang
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.52 times more return on investment than Sichuan Hebang. However, Beijing Enlight is 1.52 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.24 per unit of risk. If you would invest 944.00 in Beijing Enlight Media on November 1, 2024 and sell it today you would earn a total of 9.00 from holding Beijing Enlight Media or generate 0.95% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Beijing Enlight Media |
| Sichuan Hebang Biote |
Beijing Enlight and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Sichuan Hebang
The main advantage of trading using opposite Beijing Enlight and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Beijing Enlight vs. De Rucci Healthy | Beijing Enlight vs. Youngy Health Co | Beijing Enlight vs. Nanjing Putian Telecommunications | Beijing Enlight vs. Ningbo Fangzheng Automobile |
| Sichuan Hebang vs. Xiandai Investment Co | Sichuan Hebang vs. Beijing Enlight Media | Sichuan Hebang vs. Xiamen Insight Investment | Sichuan Hebang vs. Omnijoi Media Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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