Correlation Between China Asset and Beijing YanDong
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By analyzing existing cross correlation between China Asset Management and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on China Asset and Beijing YanDong 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 China Asset with a short position of Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Beijing YanDong.
Diversification Opportunities for China Asset and Beijing YanDong
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Beijing is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr and China Asset 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 China Asset Management are associated (or correlated) with Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of China Asset i.e., China Asset and Beijing YanDong go up and down completely randomly.
Pair Corralation between China Asset and Beijing YanDong
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.26 times more return on investment than Beijing YanDong. However, China Asset Management is 3.79 times less risky than Beijing YanDong. It trades about 0.09 of its potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about 0.01 per unit of risk. If you would invest 266.00 in China Asset Management on October 14, 2024 and sell it today you would earn a total of 111.00 from holding China Asset Management or generate 41.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| China Asset Management |
| Beijing YanDong Micr |
China Asset and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Beijing YanDong
The main advantage of trading using opposite China Asset and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Beijing YanDong 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 YanDong will offset losses from the drop in Beijing YanDong's long position.| China Asset vs. PKU HealthCare Corp | China Asset vs. Heren Health Co | China Asset vs. Soyea Technology Co | China Asset vs. Shandong Sinoglory Health |
| Beijing YanDong vs. China Asset Management | Beijing YanDong vs. Luyin Investment Group | Beijing YanDong vs. Anhui Deli Household | Beijing YanDong vs. Marssenger Kitchenware Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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