Correlation Between Chinese Universe and Beijing Lier
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By analyzing existing cross correlation between Chinese Universe Publishing and Beijing Lier High, you can compare the effects of market volatilities on Chinese Universe and Beijing Lier 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 Chinese Universe with a short position of Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Beijing Lier.
Diversification Opportunities for Chinese Universe and Beijing Lier
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Beijing is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Chinese Universe i.e., Chinese Universe and Beijing Lier go up and down completely randomly.
Pair Corralation between Chinese Universe and Beijing Lier
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.39 times more return on investment than Beijing Lier. However, Chinese Universe is 1.39 times more volatile than Beijing Lier High. It trades about 0.04 of its potential returns per unit of risk. Beijing Lier High is currently generating about 0.05 per unit of risk. If you would invest 886.00 in Chinese Universe Publishing on September 12, 2024 and sell it today you would earn a total of 457.00 from holding Chinese Universe Publishing or generate 51.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Beijing Lier High
Performance |
| Timeline |
| Chinese Universe Pub |
| Beijing Lier High |
Chinese Universe and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Beijing Lier
The main advantage of trading using opposite Chinese Universe and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Beijing Lier 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 Lier will offset losses from the drop in Beijing Lier's long position.| Chinese Universe vs. Kweichow Moutai Co | Chinese Universe vs. Shenzhen Mindray Bio Medical | Chinese Universe vs. G bits Network Technology | Chinese Universe vs. Beijing Roborock Technology |
| Beijing Lier vs. Dongfeng Automobile Co | Beijing Lier vs. Hubei Dinglong Chemical | Beijing Lier vs. Xinxiang Chemical Fiber | Beijing Lier vs. Jiangsu Xinri E Vehicle |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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