Correlation Between Beijing Sinnet and Dazhong Transportation
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By analyzing existing cross correlation between Beijing Sinnet Technology and Dazhong Transportation Group, you can compare the effects of market volatilities on Beijing Sinnet and Dazhong Transportation 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 Sinnet with a short position of Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sinnet and Dazhong Transportation.
Diversification Opportunities for Beijing Sinnet and Dazhong Transportation
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Dazhong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sinnet Technology and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation and Beijing Sinnet 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 Sinnet Technology are associated (or correlated) with Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Beijing Sinnet i.e., Beijing Sinnet and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Beijing Sinnet and Dazhong Transportation
Assuming the 90 days trading horizon Beijing Sinnet is expected to generate 1.63 times less return on investment than Dazhong Transportation. In addition to that, Beijing Sinnet is 1.14 times more volatile than Dazhong Transportation Group. It trades about 0.07 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.14 per unit of volatility. If you would invest 24.00 in Dazhong Transportation Group on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Dazhong Transportation Group or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Sinnet Technology vs. Dazhong Transportation Group
Performance |
| Timeline |
| Beijing Sinnet Technology |
| Dazhong Transportation |
Beijing Sinnet and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sinnet and Dazhong Transportation
The main advantage of trading using opposite Beijing Sinnet and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sinnet position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Beijing Sinnet vs. Dazhong Transportation Group | Beijing Sinnet vs. Juewei Food Co | Beijing Sinnet vs. Heilongjiang Transport Development | Beijing Sinnet vs. Fujian Longzhou Transportation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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