Correlation Between Beijing Jiaman and Allwin Telecommunicatio
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By analyzing existing cross correlation between Beijing Jiaman Dress and Allwin Telecommunication Co, you can compare the effects of market volatilities on Beijing Jiaman and Allwin Telecommunicatio 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 Jiaman with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Allwin Telecommunicatio.
Diversification Opportunities for Beijing Jiaman and Allwin Telecommunicatio
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Allwin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Beijing Jiaman 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 Jiaman Dress are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Allwin Telecommunicatio
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 0.63 times more return on investment than Allwin Telecommunicatio. However, Beijing Jiaman Dress is 1.58 times less risky than Allwin Telecommunicatio. It trades about -0.01 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.01 per unit of risk. If you would invest 2,351 in Beijing Jiaman Dress on October 12, 2024 and sell it today you would lose (440.00) from holding Beijing Jiaman Dress or give up 18.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Allwin Telecommunicatio |
Beijing Jiaman and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Allwin Telecommunicatio
The main advantage of trading using opposite Beijing Jiaman and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Beijing Jiaman vs. Jiangsu Yanghe Brewery | Beijing Jiaman vs. Jinsanjiang Silicon Material | Beijing Jiaman vs. Liaoning Dingjide Petrochemical | Beijing Jiaman vs. Henan Shuanghui 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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