Correlation Between Shandong Iron and Beijing Seeyon
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By analyzing existing cross correlation between Shandong Iron and and Beijing Seeyon Internet, you can compare the effects of market volatilities on Shandong Iron and Beijing Seeyon 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 Shandong Iron with a short position of Beijing Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Beijing Seeyon.
Diversification Opportunities for Shandong Iron and Beijing Seeyon
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Beijing is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet and Shandong Iron 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 Shandong Iron and are associated (or correlated) with Beijing Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of Shandong Iron i.e., Shandong Iron and Beijing Seeyon go up and down completely randomly.
Pair Corralation between Shandong Iron and Beijing Seeyon
Assuming the 90 days trading horizon Shandong Iron and is expected to under-perform the Beijing Seeyon. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Iron and is 2.58 times less risky than Beijing Seeyon. The stock trades about -0.21 of its potential returns per unit of risk. The Beijing Seeyon Internet is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,122 in Beijing Seeyon Internet on October 26, 2024 and sell it today you would earn a total of 159.00 from holding Beijing Seeyon Internet or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shandong Iron and vs. Beijing Seeyon Internet
Performance |
| Timeline |
| Shandong Iron |
| Beijing Seeyon Internet |
Shandong Iron and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Beijing Seeyon
The main advantage of trading using opposite Shandong Iron and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron position performs unexpectedly, Beijing Seeyon 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 Seeyon will offset losses from the drop in Beijing Seeyon's long position.| Shandong Iron vs. Innovative Medical Management | Shandong Iron vs. De Rucci Healthy | Shandong Iron vs. Hubei Xingfa Chemicals | Shandong Iron vs. Anhui Huaren Health |
| Beijing Seeyon vs. Fiberhome Telecommunication Technologies | Beijing Seeyon vs. Sinomach Automobile Co | Beijing Seeyon vs. Dazhong Transportation Group | Beijing Seeyon vs. Nanjing Putian Telecommunications |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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