Correlation Between Beijing Jiaman and Liaoning Dingjide
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By analyzing existing cross correlation between Beijing Jiaman Dress and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Beijing Jiaman and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Liaoning Dingjide.
Diversification Opportunities for Beijing Jiaman and Liaoning Dingjide
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Liaoning is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Liaoning Dingjide
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Liaoning Dingjide. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.5 times less risky than Liaoning Dingjide. The stock trades about -0.29 of its potential returns per unit of risk. The Liaoning Dingjide Petrochemical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,298 in Liaoning Dingjide Petrochemical on October 14, 2024 and sell it today you would lose (36.00) from holding Liaoning Dingjide Petrochemical or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Liaoning Dingjide |
Beijing Jiaman and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Liaoning Dingjide
The main advantage of trading using opposite Beijing Jiaman and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Beijing Jiaman vs. Jiangxi Naipu Mining | Beijing Jiaman vs. Uroica Mining Safety | Beijing Jiaman vs. Pengxin International Mining | Beijing Jiaman vs. XinJiang GuoTong Pipeline |
| Liaoning Dingjide vs. Hengkang Medical Group | Liaoning Dingjide vs. Hainan Haiqi Transportation | Liaoning Dingjide vs. CareRay Digital Medical | Liaoning Dingjide vs. Allmed Medical Products |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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