Correlation Between Beijing Enlight and Beijing YanDong
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By analyzing existing cross correlation between Beijing Enlight Media and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Beijing Enlight and Beijing YanDong 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 Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Beijing YanDong.
Diversification Opportunities for Beijing Enlight and Beijing YanDong
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Beijing is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Beijing YanDong go up and down completely randomly.
Pair Corralation between Beijing Enlight and Beijing YanDong
Assuming the 90 days trading horizon Beijing Enlight Media is expected to under-perform the Beijing YanDong. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Enlight Media is 1.51 times less risky than Beijing YanDong. The stock trades about -0.11 of its potential returns per unit of risk. The Beijing YanDong MicroElectronic is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,142 in Beijing YanDong MicroElectronic on October 16, 2024 and sell it today you would lose (69.00) from holding Beijing YanDong MicroElectronic or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Beijing Enlight Media |
| Beijing YanDong Micr |
Beijing Enlight and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Beijing YanDong
The main advantage of trading using opposite Beijing Enlight and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Beijing YanDong 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 Beijing YanDong will offset losses from the drop in Beijing YanDong's long position.| Beijing Enlight vs. Caihong Display Devices | Beijing Enlight vs. Shenzhen AV Display Co | Beijing Enlight vs. Shuhua Sports Co | Beijing Enlight vs. Eastern Communications Co |
| Beijing YanDong vs. GRG Banking Equipment | Beijing YanDong vs. Beijing Enlight Media | Beijing YanDong vs. JiShi Media Co | Beijing YanDong vs. Jiangsu Financial Leasing |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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