Correlation Between Beijing Bashi and Shandong Huifa
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By analyzing existing cross correlation between Beijing Bashi Media and Shandong Huifa Foodstuff, you can compare the effects of market volatilities on Beijing Bashi and Shandong Huifa 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 Shandong Huifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Shandong Huifa.
Diversification Opportunities for Beijing Bashi and Shandong Huifa
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Shandong Huifa Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Huifa Foodstuff 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 Shandong Huifa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Huifa Foodstuff has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Shandong Huifa go up and down completely randomly.
Pair Corralation between Beijing Bashi and Shandong Huifa
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 1.2 times more return on investment than Shandong Huifa. However, Beijing Bashi is 1.2 times more volatile than Shandong Huifa Foodstuff. It trades about 0.13 of its potential returns per unit of risk. Shandong Huifa Foodstuff is currently generating about 0.1 per unit of risk. If you would invest 307.00 in Beijing Bashi Media on September 3, 2024 and sell it today you would earn a total of 240.00 from holding Beijing Bashi Media or generate 78.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bashi Media vs. Shandong Huifa Foodstuff
Performance |
| Timeline |
| Beijing Bashi Media |
| Shandong Huifa Foodstuff |
Beijing Bashi and Shandong Huifa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Shandong Huifa
The main advantage of trading using opposite Beijing Bashi and Shandong Huifa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Shandong Huifa 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 Shandong Huifa will offset losses from the drop in Shandong Huifa's long position.| Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. China Mobile Limited | Beijing Bashi vs. Industrial and Commercial | Beijing Bashi vs. China Life Insurance |
| Shandong Huifa vs. Beijing Wantai Biological | Shandong Huifa vs. Aluminum Corp of | Shandong Huifa vs. COL Digital Publishing | Shandong Huifa vs. Shaanxi Meineng Clean |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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