Correlation Between Poly Real and Beijing Enlight
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By analyzing existing cross correlation between Poly Real Estate and Beijing Enlight Media, you can compare the effects of market volatilities on Poly Real 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 Poly Real with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Beijing Enlight.
Diversification Opportunities for Poly Real and Beijing Enlight
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Poly and Beijing is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate 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 Poly Real 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 Poly Real Estate 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 Poly Real i.e., Poly Real and Beijing Enlight go up and down completely randomly.
Pair Corralation between Poly Real and Beijing Enlight
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Beijing Enlight. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.45 times less risky than Beijing Enlight. The stock trades about -0.27 of its potential returns per unit of risk. The Beijing Enlight Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Beijing Enlight Media on October 26, 2024 and sell it today you would earn a total of 15.00 from holding Beijing Enlight Media or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Beijing Enlight Media
Performance |
| Timeline |
| Poly Real Estate |
| Beijing Enlight Media |
Poly Real and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Beijing Enlight
The main advantage of trading using opposite Poly Real and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real 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.| Poly Real vs. Bingo Software Co | Poly Real vs. Huatian Hotel Group | Poly Real vs. Bomesc Offshore Engineering | Poly Real vs. Dareway Software Co |
| Beijing Enlight vs. China State Construction | Beijing Enlight vs. Poly Real Estate | Beijing Enlight vs. China Vanke Co | Beijing Enlight vs. China Merchants Shekou |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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