Correlation Between China National and Beijing Enlight
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By analyzing existing cross correlation between China National Software and Beijing Enlight Media, you can compare the effects of market volatilities on China National and Beijing Enlight 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 China National with a short position of Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Beijing Enlight.
Diversification Opportunities for China National and Beijing Enlight
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China National Software and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media and China National 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 China National Software are associated (or correlated) with Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of China National i.e., China National and Beijing Enlight go up and down completely randomly.
Pair Corralation between China National and Beijing Enlight
Assuming the 90 days trading horizon China National Software is expected to under-perform the Beijing Enlight. In addition to that, China National is 1.01 times more volatile than Beijing Enlight Media. It trades about -0.01 of its total potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.01 per unit of volatility. If you would invest 918.00 in Beijing Enlight Media on October 11, 2024 and sell it today you would lose (43.00) from holding Beijing Enlight Media or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Beijing Enlight Media
Performance |
| Timeline |
| China National Software |
| Beijing Enlight Media |
China National and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Beijing Enlight
The main advantage of trading using opposite China National and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| China National vs. Beijing Yanjing Brewery | China National vs. Lonkey Industrial Co | China National vs. Chengtun Mining Group | China National vs. China Minmetals Rare |
| Beijing Enlight vs. Chahua Modern Housewares | Beijing Enlight vs. Ningbo Ligong Online | Beijing Enlight vs. JCHX Mining Management | Beijing Enlight vs. Harvest Fund Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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