Correlation Between Fujian Boss and Beijing Wantai
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By analyzing existing cross correlation between Fujian Boss Software and Beijing Wantai Biological, you can compare the effects of market volatilities on Fujian Boss and Beijing Wantai 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 Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Beijing Wantai.
Diversification Opportunities for Fujian Boss and Beijing Wantai
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Fujian Boss i.e., Fujian Boss and Beijing Wantai go up and down completely randomly.
Pair Corralation between Fujian Boss and Beijing Wantai
Assuming the 90 days trading horizon Fujian Boss Software is expected to generate 0.93 times more return on investment than Beijing Wantai. However, Fujian Boss Software is 1.07 times less risky than Beijing Wantai. It trades about -0.01 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.01 per unit of risk. If you would invest 1,746 in Fujian Boss Software on October 16, 2024 and sell it today you would lose (384.00) from holding Fujian Boss Software or give up 21.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Beijing Wantai Biological
Performance |
| Timeline |
| Fujian Boss Software |
| Beijing Wantai Biological |
Fujian Boss and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Beijing Wantai
The main advantage of trading using opposite Fujian Boss and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| Fujian Boss vs. HaiXin Foods Co | Fujian Boss vs. Chengtun Mining Group | Fujian Boss vs. Shengda Mining Co | Fujian Boss vs. Jiajia Food Group |
| Beijing Wantai vs. Highbroad Advanced Material | Beijing Wantai vs. Sichuan Fulin Transportation | Beijing Wantai vs. Wintao Communications Co | Beijing Wantai vs. China Satellite Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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