Correlation Between Dongxing Sec and BeiGene
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By analyzing existing cross correlation between Dongxing Sec Co and BeiGene, you can compare the effects of market volatilities on Dongxing Sec and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and BeiGene.
Diversification Opportunities for Dongxing Sec and BeiGene
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and BeiGene is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and BeiGene go up and down completely randomly.
Pair Corralation between Dongxing Sec and BeiGene
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.22 times less return on investment than BeiGene. But when comparing it to its historical volatility, Dongxing Sec Co is 1.37 times less risky than BeiGene. It trades about 0.05 of its potential returns per unit of risk. BeiGene is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,572 in BeiGene on September 3, 2024 and sell it today you would earn a total of 5,566 from holding BeiGene or generate 44.27% 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. BeiGene
Performance |
| Timeline |
| Dongxing Sec |
| BeiGene |
Dongxing Sec and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and BeiGene
The main advantage of trading using opposite Dongxing Sec and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Dongxing Sec vs. Air China Ltd | Dongxing Sec vs. Spring Airlines Co | Dongxing Sec vs. MayAir Technology Co | Dongxing Sec vs. Kunwu Jiuding Investment |
| BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Fujian Anjoy Foods | BeiGene vs. Shantou Wanshun Package | BeiGene vs. Guocheng Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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