Correlation Between Beijing Bashi and Iat Automobile
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By analyzing existing cross correlation between Beijing Bashi Media and Iat Automobile Technology, you can compare the effects of market volatilities on Beijing Bashi and Iat Automobile 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 Beijing Bashi with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Iat Automobile.
Diversification Opportunities for Beijing Bashi and Iat Automobile
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Iat is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology and Beijing Bashi 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 Beijing Bashi Media are associated (or correlated) with Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Iat Automobile go up and down completely randomly.
Pair Corralation between Beijing Bashi and Iat Automobile
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 0.95 times more return on investment than Iat Automobile. However, Beijing Bashi Media is 1.05 times less risky than Iat Automobile. It trades about 0.3 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.2 per unit of risk. If you would invest 425.00 in Beijing Bashi Media on November 22, 2024 and sell it today you would earn a total of 65.00 from holding Beijing Bashi Media or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Beijing Bashi Media vs. Iat Automobile Technology
Performance |
| Timeline |
| Beijing Bashi Media |
| Iat Automobile Technology |
Beijing Bashi and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Iat Automobile
The main advantage of trading using opposite Beijing Bashi and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. Industrial and Commercial | Beijing Bashi vs. China Petroleum Chemical | Beijing Bashi vs. China Construction Bank |
| Iat Automobile vs. Gem Year Industrial Co | Iat Automobile vs. Shanghai Action Education | Iat Automobile vs. Northern United Publishing | Iat Automobile vs. Zhengzhou Coal Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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