Correlation Between Beijing Zhidemai and Beijing Hualian
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By analyzing existing cross correlation between Beijing Zhidemai Technology and Beijing Hualian Department, you can compare the effects of market volatilities on Beijing Zhidemai and Beijing Hualian 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 Zhidemai with a short position of Beijing Hualian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Zhidemai and Beijing Hualian.
Diversification Opportunities for Beijing Zhidemai and Beijing Hualian
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Beijing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Zhidemai Technology and Beijing Hualian Department in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Hualian Depa and Beijing Zhidemai 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 Zhidemai Technology are associated (or correlated) with Beijing Hualian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Hualian Depa has no effect on the direction of Beijing Zhidemai i.e., Beijing Zhidemai and Beijing Hualian go up and down completely randomly.
Pair Corralation between Beijing Zhidemai and Beijing Hualian
Assuming the 90 days trading horizon Beijing Zhidemai Technology is expected to generate 0.78 times more return on investment than Beijing Hualian. However, Beijing Zhidemai Technology is 1.28 times less risky than Beijing Hualian. It trades about 0.2 of its potential returns per unit of risk. Beijing Hualian Department is currently generating about -0.04 per unit of risk. If you would invest 3,271 in Beijing Zhidemai Technology on November 22, 2024 and sell it today you would earn a total of 504.00 from holding Beijing Zhidemai Technology or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Zhidemai Technology vs. Beijing Hualian Department
Performance |
| Timeline |
| Beijing Zhidemai Tec |
| Beijing Hualian Depa |
Beijing Zhidemai and Beijing Hualian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Zhidemai and Beijing Hualian
The main advantage of trading using opposite Beijing Zhidemai and Beijing Hualian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Zhidemai position performs unexpectedly, Beijing Hualian 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 Hualian will offset losses from the drop in Beijing Hualian's long position.| Beijing Zhidemai vs. Zhuhai Comleader Information | Beijing Zhidemai vs. Chengdu Spaceon Electronics | Beijing Zhidemai vs. Innovative Medical Management | Beijing Zhidemai vs. AVIC Fund Management |
| Beijing Hualian vs. JCHX Mining Management | Beijing Hualian vs. Tibet Huayu Mining | Beijing Hualian vs. Fujian Longzhou Transportation | Beijing Hualian vs. Zhengzhou Coal Mining |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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