Correlation Between Beijing Tiantan and Xizi Clean
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By analyzing existing cross correlation between Beijing Tiantan Biological and Xizi Clean Energy, you can compare the effects of market volatilities on Beijing Tiantan and Xizi Clean 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 Tiantan with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Tiantan and Xizi Clean.
Diversification Opportunities for Beijing Tiantan and Xizi Clean
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Xizi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Tiantan Biological and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Beijing Tiantan 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 Tiantan Biological are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Beijing Tiantan i.e., Beijing Tiantan and Xizi Clean go up and down completely randomly.
Pair Corralation between Beijing Tiantan and Xizi Clean
Assuming the 90 days trading horizon Beijing Tiantan Biological is expected to generate 0.85 times more return on investment than Xizi Clean. However, Beijing Tiantan Biological is 1.17 times less risky than Xizi Clean. It trades about -0.01 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.01 per unit of risk. If you would invest 2,481 in Beijing Tiantan Biological on September 12, 2024 and sell it today you would lose (356.00) from holding Beijing Tiantan Biological or give up 14.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Beijing Tiantan Biological vs. Xizi Clean Energy
Performance |
| Timeline |
| Beijing Tiantan Biol |
| Xizi Clean Energy |
Beijing Tiantan and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Tiantan and Xizi Clean
The main advantage of trading using opposite Beijing Tiantan and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Tiantan position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Beijing Tiantan vs. Xizi Clean Energy | Beijing Tiantan vs. Yingde Greatchem Chemicals | Beijing Tiantan vs. Shenzhen Noposion Agrochemicals | Beijing Tiantan vs. Dymatic Chemicals |
| Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Bank of China | Xizi Clean vs. PetroChina Co Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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