Correlation Between Dongxing Sec and Beijing Seeyon
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By analyzing existing cross correlation between Dongxing Sec Co and Beijing Seeyon Internet, you can compare the effects of market volatilities on Dongxing Sec and Beijing Seeyon 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 Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Beijing Seeyon.
Diversification Opportunities for Dongxing Sec and Beijing Seeyon
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Beijing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet 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 Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Beijing Seeyon go up and down completely randomly.
Pair Corralation between Dongxing Sec and Beijing Seeyon
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.74 times more return on investment than Beijing Seeyon. However, Dongxing Sec Co is 1.35 times less risky than Beijing Seeyon. It trades about -0.06 of its potential returns per unit of risk. Beijing Seeyon Internet is currently generating about -0.16 per unit of risk. If you would invest 1,134 in Dongxing Sec Co on October 18, 2024 and sell it today you would lose (51.00) from holding Dongxing Sec Co or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Beijing Seeyon Internet
Performance |
| Timeline |
| Dongxing Sec |
| Beijing Seeyon Internet |
Dongxing Sec and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Beijing Seeyon
The main advantage of trading using opposite Dongxing Sec and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Beijing Seeyon 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 Seeyon will offset losses from the drop in Beijing Seeyon's long position.| Dongxing Sec vs. HeNan Splendor Science | Dongxing Sec vs. Xiamen Goldenhome Co | Dongxing Sec vs. Nanxing Furniture Machinery | Dongxing Sec vs. Easyhome New Retail |
| Beijing Seeyon vs. China Life Insurance | Beijing Seeyon vs. Cinda Securities Co | Beijing Seeyon vs. Piotech Inc A | Beijing Seeyon 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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