Correlation Between China World and Beijing Enlight
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By analyzing existing cross correlation between China World Trade and Beijing Enlight Media, you can compare the effects of market volatilities on China World and Beijing Enlight 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 World with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Beijing Enlight.
Diversification Opportunities for China World and Beijing Enlight
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Beijing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and China World 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 World Trade are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of China World i.e., China World and Beijing Enlight go up and down completely randomly.
Pair Corralation between China World and Beijing Enlight
Assuming the 90 days trading horizon China World Trade is expected to generate 0.78 times more return on investment than Beijing Enlight. However, China World Trade is 1.28 times less risky than Beijing Enlight. It trades about 0.08 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about -0.25 per unit of risk. If you would invest 2,284 in China World Trade on October 11, 2024 and sell it today you would earn a total of 61.00 from holding China World Trade or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Beijing Enlight Media
Performance |
| Timeline |
| China World Trade |
| Beijing Enlight Media |
China World and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Beijing Enlight
The main advantage of trading using opposite China World and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| China World vs. Hangzhou Gaoxin Rubber | China World vs. Konfoong Materials International | China World vs. Luyin Investment Group | China World vs. Beijing Mainstreets Investment |
| Beijing Enlight vs. Chahua Modern Housewares | Beijing Enlight vs. Ningbo Ligong Online | Beijing Enlight vs. JCHX Mining Management | Beijing Enlight vs. Harvest Fund Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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