Correlation Between Jiangsu Jinling and Beijing Bewinner
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Beijing Bewinner Communications, you can compare the effects of market volatilities on Jiangsu Jinling and Beijing Bewinner 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 Jiangsu Jinling with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Beijing Bewinner.
Diversification Opportunities for Jiangsu Jinling and Beijing Bewinner
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Beijing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Beijing Bewinner
Assuming the 90 days trading horizon Jiangsu Jinling is expected to generate 1.71 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Jiangsu Jinling Sports is 1.68 times less risky than Beijing Bewinner. It trades about 0.24 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Beijing Bewinner Communications on November 7, 2024 and sell it today you would earn a total of 88.00 from holding Beijing Bewinner Communications or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beijing Bewinner Com |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Jiangsu Jinling and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Beijing Bewinner
The main advantage of trading using opposite Jiangsu Jinling and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.The idea behind Jiangsu Jinling Sports and Beijing Bewinner Communications 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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