Correlation Between Beijing Enlight and Chahua Modern
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By analyzing existing cross correlation between Beijing Enlight Media and Chahua Modern Housewares, you can compare the effects of market volatilities on Beijing Enlight and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Chahua Modern.
Diversification Opportunities for Beijing Enlight and Chahua Modern
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Chahua is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Chahua Modern go up and down completely randomly.
Pair Corralation between Beijing Enlight and Chahua Modern
Assuming the 90 days trading horizon Beijing Enlight Media is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Enlight Media is 1.92 times less risky than Chahua Modern. The stock trades about -0.27 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Chahua Modern Housewares on October 11, 2024 and sell it today you would earn a total of 88.00 from holding Chahua Modern Housewares or generate 4.4% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Beijing Enlight Media |
| Chahua Modern Housewares |
Beijing Enlight and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Chahua Modern
The main advantage of trading using opposite Beijing Enlight and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Beijing Enlight vs. Chahua Modern Housewares | Beijing Enlight vs. Ningbo Ligong Online | Beijing Enlight vs. JCHX Mining Management | Beijing Enlight vs. Harvest Fund Management |
| Chahua Modern vs. Ye Chiu Metal | Chahua Modern vs. Northern United Publishing | Chahua Modern vs. Dalian Thermal Power | Chahua Modern vs. Southern PublishingMedia Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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