Correlation Between Jiangxi Lianchuang and BeiGene
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and BeiGene, you can compare the effects of market volatilities on Jiangxi Lianchuang 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 Jiangxi Lianchuang with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and BeiGene.
Diversification Opportunities for Jiangxi Lianchuang and BeiGene
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and BeiGene is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic 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 Jiangxi Lianchuang i.e., Jiangxi Lianchuang and BeiGene go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and BeiGene
Assuming the 90 days trading horizon Jiangxi Lianchuang is expected to generate 2.07 times less return on investment than BeiGene. In addition to that, Jiangxi Lianchuang is 1.08 times more volatile than BeiGene. It trades about 0.21 of its total potential returns per unit of risk. BeiGene is currently generating about 0.47 per unit of volatility. If you would invest 15,680 in BeiGene on November 7, 2024 and sell it today you would earn a total of 3,389 from holding BeiGene or generate 21.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. BeiGene
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BeiGene |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Jiangxi Lianchuang and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and BeiGene
The main advantage of trading using opposite Jiangxi Lianchuang and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang 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.The idea behind Jiangxi Lianchuang Opto electronic and BeiGene pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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