Correlation Between Shenzhen Bingchuan and Beijing SPC
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Beijing SPC Environment, you can compare the effects of market volatilities on Shenzhen Bingchuan and Beijing SPC 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 Shenzhen Bingchuan with a short position of Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Beijing SPC.
Diversification Opportunities for Shenzhen Bingchuan and Beijing SPC
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network are associated (or correlated) with Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Beijing SPC go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Beijing SPC
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 2.73 times more return on investment than Beijing SPC. However, Shenzhen Bingchuan is 2.73 times more volatile than Beijing SPC Environment. It trades about 0.32 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about 0.09 per unit of risk. If you would invest 1,739 in Shenzhen Bingchuan Network on September 2, 2024 and sell it today you would earn a total of 594.00 from holding Shenzhen Bingchuan Network or generate 34.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Beijing SPC Environment
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Beijing SPC Environment |
Shenzhen Bingchuan and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Beijing SPC
The main advantage of trading using opposite Shenzhen Bingchuan and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Beijing SPC 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 SPC will offset losses from the drop in Beijing SPC's long position.| Shenzhen Bingchuan vs. Shenzhen MYS Environmental | Shenzhen Bingchuan vs. AVIC Fund Management | Shenzhen Bingchuan vs. Penghua Shenzhen Energy | Shenzhen Bingchuan vs. Jizhong Energy Resources |
| Beijing SPC vs. Shenzhen MYS Environmental | Beijing SPC vs. AVIC Fund Management | Beijing SPC vs. Shenzhen Bingchuan Network | Beijing SPC vs. Penghua Shenzhen Energy |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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