Correlation Between Guangxi Wuzhou and Beijing YanDong
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Guangxi Wuzhou and Beijing YanDong 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 Guangxi Wuzhou with a short position of Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Beijing YanDong.
Diversification Opportunities for Guangxi Wuzhou and Beijing YanDong
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Beijing is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Beijing YanDong go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Beijing YanDong
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to under-perform the Beijing YanDong. In addition to that, Guangxi Wuzhou is 1.19 times more volatile than Beijing YanDong MicroElectronic. It trades about -0.18 of its total potential returns per unit of risk. Beijing YanDong MicroElectronic is currently generating about -0.06 per unit of volatility. If you would invest 2,070 in Beijing YanDong MicroElectronic on October 29, 2024 and sell it today you would lose (68.00) from holding Beijing YanDong MicroElectronic or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Beijing YanDong Micr |
Guangxi Wuzhou and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Beijing YanDong
The main advantage of trading using opposite Guangxi Wuzhou and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Beijing YanDong 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 YanDong will offset losses from the drop in Beijing YanDong's long position.| Guangxi Wuzhou vs. Cabio Biotech Wuhan | Guangxi Wuzhou vs. Holitech Technology Co | Guangxi Wuzhou vs. Sharetronic Data Technology | Guangxi Wuzhou vs. Lander Sports Development |
| Beijing YanDong vs. Semiconductor Manufacturing Electronics | Beijing YanDong vs. Chongqing Road Bridge | Beijing YanDong vs. LianChuang Electronic Technology | Beijing YanDong vs. Road Environment Technology |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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