Correlation Between Winner Medical and Beijing New
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By analyzing existing cross correlation between Winner Medical Co and Beijing New Building, you can compare the effects of market volatilities on Winner Medical and Beijing New 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 Winner Medical with a short position of Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Beijing New.
Diversification Opportunities for Winner Medical and Beijing New
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Winner and Beijing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building and Winner Medical 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 Winner Medical Co are associated (or correlated) with Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Winner Medical i.e., Winner Medical and Beijing New go up and down completely randomly.
Pair Corralation between Winner Medical and Beijing New
Assuming the 90 days trading horizon Winner Medical Co is expected to under-perform the Beijing New. In addition to that, Winner Medical is 1.11 times more volatile than Beijing New Building. It trades about -0.01 of its total potential returns per unit of risk. Beijing New Building is currently generating about 0.03 per unit of volatility. If you would invest 2,499 in Beijing New Building on August 26, 2024 and sell it today you would earn a total of 385.00 from holding Beijing New Building or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Beijing New Building
Performance |
| Timeline |
| Winner Medical |
| Beijing New Building |
Winner Medical and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Beijing New
The main advantage of trading using opposite Winner Medical and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Beijing New 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 New will offset losses from the drop in Beijing New's long position.| Winner Medical vs. Bank of China | Winner Medical vs. Kweichow Moutai Co | Winner Medical vs. PetroChina Co Ltd | Winner Medical vs. Bank of Communications |
| Beijing New vs. Shanghai Yanpu Metal | Beijing New vs. Winner Medical Co | Beijing New vs. Hefei Metalforming Mach | Beijing New vs. Lootom Telcovideo Network |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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