Correlation Between Beijing Wandong and Gotion High
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By analyzing existing cross correlation between Beijing Wandong Medical and Gotion High tech, you can compare the effects of market volatilities on Beijing Wandong and Gotion High 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 Beijing Wandong with a short position of Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Gotion High.
Diversification Opportunities for Beijing Wandong and Gotion High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Gotion is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech and Beijing Wandong 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 Beijing Wandong Medical are associated (or correlated) with Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Gotion High go up and down completely randomly.
Pair Corralation between Beijing Wandong and Gotion High
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 0.87 times more return on investment than Gotion High. However, Beijing Wandong Medical is 1.15 times less risky than Gotion High. It trades about 0.01 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.15 per unit of risk. If you would invest 1,763 in Beijing Wandong Medical on September 13, 2024 and sell it today you would lose (3.00) from holding Beijing Wandong Medical or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Gotion High tech
Performance |
| Timeline |
| Beijing Wandong Medical |
| Gotion High tech |
Beijing Wandong and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Gotion High
The main advantage of trading using opposite Beijing Wandong and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Beijing Wandong vs. Industrial and Commercial | Beijing Wandong vs. Kweichow Moutai Co | Beijing Wandong vs. Agricultural Bank of | Beijing Wandong vs. China Mobile Limited |
| Gotion High vs. Industrial and Commercial | Gotion High vs. Agricultural Bank of | Gotion High vs. China Construction Bank | Gotion High vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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