Correlation Between Qingdao Baheal and BeiGene
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By analyzing existing cross correlation between Qingdao Baheal Medical and BeiGene, you can compare the effects of market volatilities on Qingdao Baheal and BeiGene 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 Qingdao Baheal with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Baheal and BeiGene.
Diversification Opportunities for Qingdao Baheal and BeiGene
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and BeiGene is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Baheal Medical and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Qingdao Baheal 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 Qingdao Baheal Medical are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Qingdao Baheal i.e., Qingdao Baheal and BeiGene go up and down completely randomly.
Pair Corralation between Qingdao Baheal and BeiGene
Assuming the 90 days trading horizon Qingdao Baheal Medical is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Baheal Medical is 1.29 times less risky than BeiGene. The stock trades about -0.28 of its potential returns per unit of risk. The BeiGene is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 17,800 in BeiGene on September 13, 2024 and sell it today you would lose (1,611) from holding BeiGene or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Baheal Medical vs. BeiGene
Performance |
| Timeline |
| Qingdao Baheal Medical |
| BeiGene |
Qingdao Baheal and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Baheal and BeiGene
The main advantage of trading using opposite Qingdao Baheal and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Baheal position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Qingdao Baheal vs. BeiGene | Qingdao Baheal vs. Kweichow Moutai Co | Qingdao Baheal vs. Beijing Roborock Technology | Qingdao Baheal vs. G bits Network Technology |
| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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