Correlation Between Highbroad Advanced and Beijing Wantai
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By analyzing existing cross correlation between Highbroad Advanced Material and Beijing Wantai Biological, you can compare the effects of market volatilities on Highbroad Advanced and Beijing Wantai 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 Highbroad Advanced with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highbroad Advanced and Beijing Wantai.
Diversification Opportunities for Highbroad Advanced and Beijing Wantai
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Highbroad and Beijing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Highbroad Advanced Material and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and Highbroad Advanced 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 Highbroad Advanced Material are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Highbroad Advanced i.e., Highbroad Advanced and Beijing Wantai go up and down completely randomly.
Pair Corralation between Highbroad Advanced and Beijing Wantai
Assuming the 90 days trading horizon Highbroad Advanced Material is expected to under-perform the Beijing Wantai. In addition to that, Highbroad Advanced is 1.62 times more volatile than Beijing Wantai Biological. It trades about -0.12 of its total potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.09 per unit of volatility. If you would invest 7,294 in Beijing Wantai Biological on October 30, 2024 and sell it today you would lose (485.00) from holding Beijing Wantai Biological or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highbroad Advanced Material vs. Beijing Wantai Biological
Performance |
| Timeline |
| Highbroad Advanced |
| Beijing Wantai Biological |
Highbroad Advanced and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highbroad Advanced and Beijing Wantai
The main advantage of trading using opposite Highbroad Advanced and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highbroad Advanced position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Highbroad Advanced vs. Chengdu Kanghua Biological | Highbroad Advanced vs. Suzhou Novoprotein Scientific | Highbroad Advanced vs. Aluminum Corp of | Highbroad Advanced vs. COL Digital Publishing |
| Beijing Wantai vs. Ingenic Semiconductor | Beijing Wantai vs. Shanghai V Test Semiconductor | Beijing Wantai vs. Shannon Semiconductor Technology | Beijing Wantai vs. Semiconductor Manufacturing Intl |
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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