Correlation Between SAIC and Beijing Wantai
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By analyzing existing cross correlation between SAIC Motor Corp and Beijing Wantai Biological, you can compare the effects of market volatilities on SAIC and Beijing Wantai 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 SAIC with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIC and Beijing Wantai.
Diversification Opportunities for SAIC and Beijing Wantai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SAIC and Beijing is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SAIC Motor Corp and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and SAIC 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 SAIC Motor Corp are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of SAIC i.e., SAIC and Beijing Wantai go up and down completely randomly.
Pair Corralation between SAIC and Beijing Wantai
Assuming the 90 days trading horizon SAIC Motor Corp is expected to generate 0.68 times more return on investment than Beijing Wantai. However, SAIC Motor Corp is 1.47 times less risky than Beijing Wantai. It trades about 0.02 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.01 per unit of risk. If you would invest 1,467 in SAIC Motor Corp on October 16, 2024 and sell it today you would earn a total of 160.00 from holding SAIC Motor Corp or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SAIC Motor Corp vs. Beijing Wantai Biological
Performance |
| Timeline |
| SAIC Motor Corp |
| Beijing Wantai Biological |
SAIC and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIC and Beijing Wantai
The main advantage of trading using opposite SAIC and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIC position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| SAIC vs. Kontour Medical Technology | SAIC vs. Chongqing Shunbo Aluminum | SAIC vs. Winner Medical Co | SAIC vs. Eyebright Medical Technology |
| Beijing Wantai vs. Highbroad Advanced Material | Beijing Wantai vs. Sichuan Fulin Transportation | Beijing Wantai vs. Wintao Communications Co | Beijing Wantai vs. China Satellite Communications |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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