Correlation Between Beijing Bashi and Bright Real
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By analyzing existing cross correlation between Beijing Bashi Media and Bright Real Estate, you can compare the effects of market volatilities on Beijing Bashi and Bright Real 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 Bright Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Bright Real.
Diversification Opportunities for Beijing Bashi and Bright Real
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Bright is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Bright Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Real Estate 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 Bright Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Real Estate has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Bright Real go up and down completely randomly.
Pair Corralation between Beijing Bashi and Bright Real
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.66 times less return on investment than Bright Real. In addition to that, Beijing Bashi is 1.12 times more volatile than Bright Real Estate. It trades about 0.03 of its total potential returns per unit of risk. Bright Real Estate is currently generating about 0.06 per unit of volatility. If you would invest 254.00 in Bright Real Estate on September 13, 2024 and sell it today you would earn a total of 195.00 from holding Bright Real Estate or generate 76.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Bashi Media vs. Bright Real Estate
Performance |
| Timeline |
| Beijing Bashi Media |
| Bright Real Estate |
Beijing Bashi and Bright Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Bright Real
The main advantage of trading using opposite Beijing Bashi and Bright Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Bright Real 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 Bright Real will offset losses from the drop in Bright Real's long position.| Beijing Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
| Bright Real vs. Focus Media Information | Bright Real vs. Heilongjiang Publishing Media | Bright Real vs. Guangzhou Jinyi Media | Bright Real vs. Beijing Bashi Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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