Correlation Between Beijing Wandong and Shenzhen Glory
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and Shenzhen Glory Medical, you can compare the effects of market volatilities on Beijing Wandong and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Shenzhen Glory.
Diversification Opportunities for Beijing Wandong and Shenzhen Glory
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Beijing Wandong and Shenzhen Glory
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 1.27 times more return on investment than Shenzhen Glory. However, Beijing Wandong is 1.27 times more volatile than Shenzhen Glory Medical. It trades about 0.18 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.03 per unit of risk. If you would invest 1,497 in Beijing Wandong Medical on August 29, 2024 and sell it today you would earn a total of 184.00 from holding Beijing Wandong Medical or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Beijing Wandong Medical |
| Shenzhen Glory Medical |
Beijing Wandong and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Shenzhen Glory
The main advantage of trading using opposite Beijing Wandong and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security Technology |
| Shenzhen Glory vs. PetroChina Co Ltd | Shenzhen Glory vs. China State Construction | Shenzhen Glory vs. China Mobile Limited | Shenzhen Glory vs. Industrial and Commercial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world |