Correlation Between Dalian Thermal and Beijing Mainstreets
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By analyzing existing cross correlation between Dalian Thermal Power and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Dalian Thermal and Beijing Mainstreets 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 Dalian Thermal with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Beijing Mainstreets.
Diversification Opportunities for Dalian Thermal and Beijing Mainstreets
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Dalian Thermal and Beijing Mainstreets
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 1.02 times more return on investment than Beijing Mainstreets. However, Dalian Thermal is 1.02 times more volatile than Beijing Mainstreets Investment. It trades about 0.02 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.1 per unit of risk. If you would invest 824.00 in Dalian Thermal Power on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Dalian Thermal Power or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Dalian Thermal Power |
| Beijing Mainstreets |
Dalian Thermal and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Beijing Mainstreets
The main advantage of trading using opposite Dalian Thermal and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, Beijing Mainstreets 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 Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Dalian Thermal vs. PetroChina Co Ltd | Dalian Thermal vs. China Mobile Limited | Dalian Thermal vs. CNOOC Limited | Dalian Thermal vs. Ping An Insurance |
| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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