Correlation Between Tonghua Grape and BeiGene
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By analyzing existing cross correlation between Tonghua Grape Wine and BeiGene, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and BeiGene.
Diversification Opportunities for Tonghua Grape and BeiGene
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tonghua and BeiGene is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and BeiGene go up and down completely randomly.
Pair Corralation between Tonghua Grape and BeiGene
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Tonghua Grape Wine is 1.0 times less risky than BeiGene. The stock trades about -0.01 of its potential returns per unit of risk. The BeiGene is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 17,500 in BeiGene on October 29, 2024 and sell it today you would earn a total of 1,400 from holding BeiGene or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. BeiGene
Performance |
| Timeline |
| Tonghua Grape Wine |
| BeiGene |
Tonghua Grape and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and BeiGene
The main advantage of trading using opposite Tonghua Grape and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.| Tonghua Grape vs. MayAir Technology Co | Tonghua Grape vs. Hefei Metalforming Mach | Tonghua Grape vs. Xilong Chemical Co | Tonghua Grape vs. Guocheng Mining Co |
| BeiGene vs. Lander Sports Development | BeiGene vs. Zoje Resources Investment | BeiGene vs. Shenzhen AV Display Co | BeiGene vs. StarPower Semiconductor |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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