Correlation Between Huaibei Mining and Beijing Bashi
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By analyzing existing cross correlation between Huaibei Mining Holdings and Beijing Bashi Media, you can compare the effects of market volatilities on Huaibei Mining and Beijing Bashi 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 Huaibei Mining with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Beijing Bashi.
Diversification Opportunities for Huaibei Mining and Beijing Bashi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media and Huaibei Mining 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 Huaibei Mining Holdings are associated (or correlated) with Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Beijing Bashi go up and down completely randomly.
Pair Corralation between Huaibei Mining and Beijing Bashi
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Beijing Bashi. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.48 times less risky than Beijing Bashi. The stock trades about -0.25 of its potential returns per unit of risk. The Beijing Bashi Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Beijing Bashi Media on August 28, 2024 and sell it today you would lose (2.00) from holding Beijing Bashi Media or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Beijing Bashi Media
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Beijing Bashi Media |
Huaibei Mining and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Beijing Bashi
The main advantage of trading using opposite Huaibei Mining and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| Huaibei Mining vs. Jonjee Hi tech Industrial | Huaibei Mining vs. Zhejiang Yayi Metal | Huaibei Mining vs. Wuhan Yangtze Communication | Huaibei Mining vs. Shanghai Yanpu Metal |
| Beijing Bashi vs. Runjian Communication Co | Beijing Bashi vs. Cowealth Medical China | Beijing Bashi vs. CICT Mobile Communication | Beijing Bashi vs. Hengkang Medical Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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