Correlation Between Beijing Wandong and Nanjing Medlander
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By analyzing existing cross correlation between Beijing Wandong Medical and Nanjing Medlander Medical, you can compare the effects of market volatilities on Beijing Wandong and Nanjing Medlander 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 Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Nanjing Medlander.
Diversification Opportunities for Beijing Wandong and Nanjing Medlander
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Nanjing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander 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 Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Beijing Wandong and Nanjing Medlander
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 1.15 times more return on investment than Nanjing Medlander. However, Beijing Wandong is 1.15 times more volatile than Nanjing Medlander Medical. It trades about 0.18 of its potential returns per unit of risk. Nanjing Medlander Medical 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Nanjing Medlander Medical
Performance |
| Timeline |
| Beijing Wandong Medical |
| Nanjing Medlander Medical |
Beijing Wandong and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Nanjing Medlander
The main advantage of trading using opposite Beijing Wandong and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Nanjing Medlander 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 Nanjing Medlander will offset losses from the drop in Nanjing Medlander'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 |
| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. China Construction Bank | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander 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 Stocks Directory module to find actively traded stocks across global markets.
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