Correlation Between Aba Chemicals and Beijing Jiaman
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By analyzing existing cross correlation between Aba Chemicals Corp and Beijing Jiaman Dress, you can compare the effects of market volatilities on Aba Chemicals and Beijing Jiaman 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 Aba Chemicals with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Beijing Jiaman.
Diversification Opportunities for Aba Chemicals and Beijing Jiaman
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Beijing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Aba Chemicals and Beijing Jiaman
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Beijing Jiaman. In addition to that, Aba Chemicals is 1.13 times more volatile than Beijing Jiaman Dress. It trades about -0.28 of its total potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.1 per unit of volatility. If you would invest 2,087 in Beijing Jiaman Dress on October 25, 2024 and sell it today you would lose (99.00) from holding Beijing Jiaman Dress or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Aba Chemicals Corp |
| Beijing Jiaman Dress |
Aba Chemicals and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Beijing Jiaman
The main advantage of trading using opposite Aba Chemicals and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Rongsheng Petrochemical Co |
| Beijing Jiaman vs. PetroChina Co Ltd | Beijing Jiaman vs. Gansu Jiu Steel | Beijing Jiaman vs. Ming Yang Smart | Beijing Jiaman vs. Aba Chemicals 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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