Correlation Between Beijing Jiaman and Niutech Environment
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By analyzing existing cross correlation between Beijing Jiaman Dress and Niutech Environment Technology, you can compare the effects of market volatilities on Beijing Jiaman and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Niutech Environment.
Diversification Opportunities for Beijing Jiaman and Niutech Environment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Niutech is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Niutech Environment go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Niutech Environment
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 0.7 times more return on investment than Niutech Environment. However, Beijing Jiaman Dress is 1.42 times less risky than Niutech Environment. It trades about 0.0 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.01 per unit of risk. If you would invest 2,095 in Beijing Jiaman Dress on October 18, 2024 and sell it today you would lose (97.00) from holding Beijing Jiaman Dress or give up 4.63% 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. Niutech Environment Technology
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Niutech Environment |
Beijing Jiaman and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Niutech Environment
The main advantage of trading using opposite Beijing Jiaman and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Beijing Jiaman vs. Industrial Bank Co | Beijing Jiaman vs. Hua Xia Bank | Beijing Jiaman vs. Guosheng Financial Holding | Beijing Jiaman vs. Innovative Medical Management |
| Niutech Environment vs. Sihui Fuji Electronics | Niutech Environment vs. YiDong Electronics Technology | Niutech Environment vs. Success Electronics | Niutech Environment vs. Hubei Yingtong Telecommunication |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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