Correlation Between China Fortune and Beijing Seeyon
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By analyzing existing cross correlation between China Fortune Land and Beijing Seeyon Internet, you can compare the effects of market volatilities on China Fortune and Beijing Seeyon 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 China Fortune with a short position of Beijing Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Beijing Seeyon.
Diversification Opportunities for China Fortune and Beijing Seeyon
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet and China Fortune 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 China Fortune Land are associated (or correlated) with Beijing Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of China Fortune i.e., China Fortune and Beijing Seeyon go up and down completely randomly.
Pair Corralation between China Fortune and Beijing Seeyon
Assuming the 90 days trading horizon China Fortune Land is expected to under-perform the Beijing Seeyon. But the stock apears to be less risky and, when comparing its historical volatility, China Fortune Land is 1.08 times less risky than Beijing Seeyon. The stock trades about -0.35 of its potential returns per unit of risk. The Beijing Seeyon Internet is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 2,139 in Beijing Seeyon Internet on October 18, 2024 and sell it today you would lose (289.00) from holding Beijing Seeyon Internet or give up 13.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Beijing Seeyon Internet
Performance |
| Timeline |
| China Fortune Land |
| Beijing Seeyon Internet |
China Fortune and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Beijing Seeyon
The main advantage of trading using opposite China Fortune and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune position performs unexpectedly, Beijing Seeyon 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 Seeyon will offset losses from the drop in Beijing Seeyon's long position.| China Fortune vs. Inspur Software Co | China Fortune vs. Wonders Information | China Fortune vs. Emdoor Information Co | China Fortune vs. ButOne Information Corp |
| Beijing Seeyon vs. China Life Insurance | Beijing Seeyon vs. Cinda Securities Co | Beijing Seeyon vs. Piotech Inc A | Beijing Seeyon vs. Dongxing Sec 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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