Correlation Between Wuhan Yangtze and BeiGene
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By analyzing existing cross correlation between Wuhan Yangtze Communication and BeiGene, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and BeiGene.
Diversification Opportunities for Wuhan Yangtze and BeiGene
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and BeiGene is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and BeiGene go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and BeiGene
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.25 times more return on investment than BeiGene. However, Wuhan Yangtze is 1.25 times more volatile than BeiGene. It trades about 0.03 of its potential returns per unit of risk. BeiGene is currently generating about 0.02 per unit of risk. If you would invest 1,708 in Wuhan Yangtze Communication on October 16, 2024 and sell it today you would earn a total of 431.00 from holding Wuhan Yangtze Communication or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. BeiGene
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| BeiGene |
Wuhan Yangtze and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and BeiGene
The main advantage of trading using opposite Wuhan Yangtze and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
| BeiGene vs. Youyou Foods Co | BeiGene vs. Jiahe Foods Industry | BeiGene vs. Xiwang Foodstuffs Co | BeiGene vs. Wuhan Yangtze Communication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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