Correlation Between Tengda Construction and BeiGene
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By analyzing existing cross correlation between Tengda Construction Group and BeiGene, you can compare the effects of market volatilities on Tengda Construction and BeiGene 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 Tengda Construction with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and BeiGene.
Diversification Opportunities for Tengda Construction and BeiGene
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tengda and BeiGene is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Tengda Construction 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 Tengda Construction Group are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Tengda Construction i.e., Tengda Construction and BeiGene go up and down completely randomly.
Pair Corralation between Tengda Construction and BeiGene
Assuming the 90 days trading horizon Tengda Construction Group is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Tengda Construction Group is 1.42 times less risky than BeiGene. The stock trades about -0.21 of its potential returns per unit of risk. The BeiGene is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 16,100 in BeiGene on October 23, 2024 and sell it today you would earn a total of 2,680 from holding BeiGene or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tengda Construction Group vs. BeiGene
Performance |
| Timeline |
| Tengda Construction |
| BeiGene |
Tengda Construction and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and BeiGene
The main advantage of trading using opposite Tengda Construction and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Tengda Construction vs. Chengdu Kanghua Biological | Tengda Construction vs. Beijing Wantai Biological | Tengda Construction vs. Suzhou Novoprotein Scientific | Tengda Construction vs. Aluminum Corp of |
| BeiGene vs. Thinkingdom Media Group | BeiGene vs. Jiangnan Mould Plastic | BeiGene vs. Shanghai Xinhua Media | BeiGene vs. Omnijoi Media Corp |
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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