Correlation Between Hangzhou Minsheng and Beijing Baolande
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Beijing Baolande Software, you can compare the effects of market volatilities on Hangzhou Minsheng and Beijing Baolande 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 Hangzhou Minsheng with a short position of Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Beijing Baolande.
Diversification Opportunities for Hangzhou Minsheng and Beijing Baolande
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Beijing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software and Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare are associated (or correlated) with Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Hangzhou Minsheng i.e., Hangzhou Minsheng and Beijing Baolande go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Beijing Baolande
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to generate 0.5 times more return on investment than Beijing Baolande. However, Hangzhou Minsheng Healthcare is 2.01 times less risky than Beijing Baolande. It trades about -0.12 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about -0.06 per unit of risk. If you would invest 1,356 in Hangzhou Minsheng Healthcare on October 30, 2024 and sell it today you would lose (131.00) from holding Hangzhou Minsheng Healthcare or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Beijing Baolande Software
Performance |
| Timeline |
| Hangzhou Minsheng |
| Beijing Baolande Software |
Hangzhou Minsheng and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Beijing Baolande
The main advantage of trading using opposite Hangzhou Minsheng and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng position performs unexpectedly, Beijing Baolande 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 Baolande will offset losses from the drop in Beijing Baolande's long position.| Hangzhou Minsheng vs. Aurora Optoelectronics Co | Hangzhou Minsheng vs. Hainan Haiqi Transportation | Hangzhou Minsheng vs. Weihai Honglin Electronic | Hangzhou Minsheng vs. TongFu Microelectronics Co |
| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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