Correlation Between Chongqing Brewery and BeiGene
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and BeiGene, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and BeiGene.
Diversification Opportunities for Chongqing Brewery and BeiGene
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and BeiGene is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and BeiGene go up and down completely randomly.
Pair Corralation between Chongqing Brewery and BeiGene
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.19 times less risky than BeiGene. The stock trades about -0.03 of its potential returns per unit of risk. The BeiGene is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. BeiGene
Performance |
| Timeline |
| Chongqing Brewery |
| BeiGene |
Chongqing Brewery and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and BeiGene
The main advantage of trading using opposite Chongqing Brewery and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.| Chongqing Brewery vs. Beijing Wantai Biological | Chongqing Brewery vs. Aluminum Corp of | Chongqing Brewery vs. COL Digital Publishing | Chongqing Brewery vs. Shaanxi Meineng Clean |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |