Correlation Between Fujian Boss and Beijing Mainstreets
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By analyzing existing cross correlation between Fujian Boss Software and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Fujian Boss and Beijing Mainstreets 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 Fujian Boss with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Beijing Mainstreets.
Diversification Opportunities for Fujian Boss and Beijing Mainstreets
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fujian and Beijing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Fujian Boss 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 Fujian Boss Software are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Fujian Boss i.e., Fujian Boss and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Fujian Boss and Beijing Mainstreets
Assuming the 90 days trading horizon Fujian Boss Software is expected to generate 0.76 times more return on investment than Beijing Mainstreets. However, Fujian Boss Software is 1.31 times less risky than Beijing Mainstreets. It trades about 0.04 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.07 per unit of risk. If you would invest 1,233 in Fujian Boss Software on November 7, 2024 and sell it today you would earn a total of 217.00 from holding Fujian Boss Software or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Fujian Boss Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beijing Mainstreets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fujian Boss and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Beijing Mainstreets
The main advantage of trading using opposite Fujian Boss and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Beijing Mainstreets 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 Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.The idea behind Fujian Boss Software and Beijing Mainstreets Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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