Correlation Between Beijing Jiaman and Malion New
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By analyzing existing cross correlation between Beijing Jiaman Dress and Malion New Materials, you can compare the effects of market volatilities on Beijing Jiaman and Malion 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 Beijing Jiaman with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Malion New.
Diversification Opportunities for Beijing Jiaman and Malion New
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Malion is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Malion New go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Malion New
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.56 times less risky than Malion New. The stock trades about -0.02 of its potential returns per unit of risk. The Malion New Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 732.00 in Malion New Materials on November 28, 2024 and sell it today you would earn a total of 142.00 from holding Malion New Materials or generate 19.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Malion New Materials
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Malion New Materials |
Beijing Jiaman and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Malion New
The main advantage of trading using opposite Beijing Jiaman and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Malion 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 Malion New will offset losses from the drop in Malion New's long position.| Beijing Jiaman vs. CSSC Offshore Marine | Beijing Jiaman vs. COL Digital Publishing | Beijing Jiaman vs. Bangyan Technology Co | Beijing Jiaman vs. iSoftStone Information Technology |
| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New vs. Shandong Gold 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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