Correlation Between Cinda Securities and Beijing New
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By analyzing existing cross correlation between Cinda Securities Co and Beijing New Building, you can compare the effects of market volatilities on Cinda Securities and Beijing New 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 Cinda Securities with a short position of Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Beijing New.
Diversification Opportunities for Cinda Securities and Beijing New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Cinda Securities i.e., Cinda Securities and Beijing New go up and down completely randomly.
Pair Corralation between Cinda Securities and Beijing New
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.19 times more return on investment than Beijing New. However, Cinda Securities is 1.19 times more volatile than Beijing New Building. It trades about 0.02 of its potential returns per unit of risk. Beijing New Building is currently generating about -0.02 per unit of risk. If you would invest 1,479 in Cinda Securities Co on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Cinda Securities Co or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Beijing New Building
Performance |
| Timeline |
| Cinda Securities |
| Beijing New Building |
Cinda Securities and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Beijing New
The main advantage of trading using opposite Cinda Securities and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Beijing New 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 New will offset losses from the drop in Beijing New's long position.| Cinda Securities vs. BeiGene | Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Beijing Roborock Technology | Cinda Securities vs. G bits Network Technology |
| Beijing New vs. Industrial and Commercial | Beijing New vs. Agricultural Bank of | Beijing New vs. China Construction Bank | Beijing New vs. Bank of China |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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