Correlation Between New China and Beijing Zhidemai
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By analyzing existing cross correlation between New China Life and Beijing Zhidemai Technology, you can compare the effects of market volatilities on New China and Beijing Zhidemai 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 New China with a short position of Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Beijing Zhidemai.
Diversification Opportunities for New China and Beijing Zhidemai
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec and New China 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 New China Life are associated (or correlated) with Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of New China i.e., New China and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between New China and Beijing Zhidemai
Assuming the 90 days trading horizon New China is expected to generate 1.02 times less return on investment than Beijing Zhidemai. But when comparing it to its historical volatility, New China Life is 2.07 times less risky than Beijing Zhidemai. It trades about 0.08 of its potential returns per unit of risk. Beijing Zhidemai Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,602 in Beijing Zhidemai Technology on August 29, 2024 and sell it today you would earn a total of 468.00 from holding Beijing Zhidemai Technology or generate 17.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
New China Life vs. Beijing Zhidemai Technology
Performance |
| Timeline |
| New China Life |
| Beijing Zhidemai Tec |
New China and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Beijing Zhidemai
The main advantage of trading using opposite New China and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Beijing Zhidemai 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 Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| New China vs. Shaanxi Meineng Clean | New China vs. Jiamei Food Packaging | New China vs. Yankershop Food Co | New China vs. AVCON Information Tech |
| Beijing Zhidemai vs. Kweichow Moutai Co | Beijing Zhidemai vs. Shenzhen Mindray Bio Medical | Beijing Zhidemai vs. Jiangsu Pacific Quartz | Beijing Zhidemai vs. G bits Network Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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