Correlation Between Beijing Wandong and Shenzhen Longsys
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Beijing Wandong and Shenzhen Longsys 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 Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Shenzhen Longsys.
Diversification Opportunities for Beijing Wandong and Shenzhen Longsys
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Beijing Wandong and Shenzhen Longsys
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 0.96 times more return on investment than Shenzhen Longsys. However, Beijing Wandong Medical is 1.04 times less risky than Shenzhen Longsys. It trades about 0.18 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about -0.1 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Beijing Wandong Medical |
| Shenzhen Longsys Ele |
Beijing Wandong and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Shenzhen Longsys
The main advantage of trading using opposite Beijing Wandong and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Shenzhen Longsys 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 Longsys will offset losses from the drop in Shenzhen Longsys' 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 Longsys vs. Beijing Wandong Medical | Shenzhen Longsys vs. Cowealth Medical China | Shenzhen Longsys vs. Winner Medical Co | Shenzhen Longsys vs. Jiangsu Jinling Sports |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |