Correlation Between Greattown Holdings and BeiGene
Specify exactly 2 symbols:
By analyzing existing cross correlation between Greattown Holdings Ltd and BeiGene, you can compare the effects of market volatilities on Greattown Holdings and BeiGene 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 Greattown Holdings with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greattown Holdings and BeiGene.
Diversification Opportunities for Greattown Holdings and BeiGene
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greattown and BeiGene is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Greattown Holdings Ltd and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Greattown Holdings 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 Greattown Holdings Ltd are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Greattown Holdings i.e., Greattown Holdings and BeiGene go up and down completely randomly.
Pair Corralation between Greattown Holdings and BeiGene
Assuming the 90 days trading horizon Greattown Holdings is expected to generate 4.5 times less return on investment than BeiGene. In addition to that, Greattown Holdings is 1.12 times more volatile than BeiGene. It trades about 0.02 of its total potential returns per unit of risk. BeiGene is currently generating about 0.11 per unit of volatility. If you would invest 12,754 in BeiGene on September 3, 2024 and sell it today you would earn a total of 5,379 from holding BeiGene or generate 42.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greattown Holdings Ltd vs. BeiGene
Performance |
| Timeline |
| Greattown Holdings |
| BeiGene |
Greattown Holdings and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greattown Holdings and BeiGene
The main advantage of trading using opposite Greattown Holdings and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greattown Holdings position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Greattown Holdings vs. By health | Greattown Holdings vs. Jiahe Foods Industry | Greattown Holdings vs. Sanbo Hospital Management | Greattown Holdings vs. Andon Health Co |
| BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Fujian Anjoy Foods | BeiGene vs. Shantou Wanshun Package | BeiGene vs. Guocheng Mining 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |