Correlation Between Beijing Wandong and Xingguang Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Beijing Wandong and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Xingguang Agricultural.
Diversification Opportunities for Beijing Wandong and Xingguang Agricultural
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Xingguang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Beijing Wandong and Xingguang Agricultural
Assuming the 90 days trading horizon Beijing Wandong is expected to generate 1.22 times less return on investment than Xingguang Agricultural. But when comparing it to its historical volatility, Beijing Wandong Medical is 1.29 times less risky than Xingguang Agricultural. It trades about 0.08 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 723.00 in Xingguang Agricultural Mach on September 1, 2024 and sell it today you would earn a total of 191.00 from holding Xingguang Agricultural Mach or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Beijing Wandong Medical |
| Xingguang Agricultural |
Beijing Wandong and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Xingguang Agricultural
The main advantage of trading using opposite Beijing Wandong and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Beijing Wandong vs. Jiangxi Naipu Mining | Beijing Wandong vs. Anhui Huilong Agricultural | Beijing Wandong vs. Xinjiang Baodi Mining | Beijing Wandong vs. Jinhui Liquor Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |