Correlation Between Dongxing Sec and Beijing Mainstreets
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongxing Sec Co and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Beijing Mainstreets.
Diversification Opportunities for Dongxing Sec and Beijing Mainstreets
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Dongxing Sec 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 Dongxing Sec Co 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 Dongxing Sec i.e., Dongxing Sec and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Dongxing Sec and Beijing Mainstreets
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.51 times more return on investment than Beijing Mainstreets. However, Dongxing Sec Co is 1.96 times less risky than Beijing Mainstreets. It trades about 0.06 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.03 per unit of risk. If you would invest 766.00 in Dongxing Sec Co on September 14, 2024 and sell it today you would earn a total of 442.00 from holding Dongxing Sec Co or generate 57.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Dongxing Sec |
| Beijing Mainstreets |
Dongxing Sec and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Beijing Mainstreets
The main advantage of trading using opposite Dongxing Sec and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Shanghai CEO Environmental | Dongxing Sec vs. Juewei Food Co | Dongxing Sec vs. Innovative Medical Management | Dongxing Sec vs. Huaxia Fund Management |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |