Correlation Between 360 Security and Beijing Wandong
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By analyzing existing cross correlation between 360 Security Technology and Beijing Wandong Medical, you can compare the effects of market volatilities on 360 Security and Beijing Wandong 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 360 Security with a short position of Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and Beijing Wandong.
Diversification Opportunities for 360 Security and Beijing Wandong
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 360 and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical and 360 Security 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 360 Security Technology are associated (or correlated) with Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of 360 Security i.e., 360 Security and Beijing Wandong go up and down completely randomly.
Pair Corralation between 360 Security and Beijing Wandong
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 1.57 times more return on investment than Beijing Wandong. However, 360 Security is 1.57 times more volatile than Beijing Wandong Medical. It trades about 0.02 of its potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.0 per unit of risk. If you would invest 1,157 in 360 Security Technology on November 27, 2024 and sell it today you would earn a total of 52.00 from holding 360 Security Technology or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Security Technology vs. Beijing Wandong Medical
Performance |
| Timeline |
| 360 Security Technology |
| Beijing Wandong Medical |
360 Security and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Security and Beijing Wandong
The main advantage of trading using opposite 360 Security and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security position performs unexpectedly, Beijing Wandong 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 Wandong will offset losses from the drop in Beijing Wandong's long position.| 360 Security vs. MayAir Technology Co | 360 Security vs. Hang Xiao Steel | 360 Security vs. Fangda Special Steel | 360 Security vs. Wangneng Environment Co |
| Beijing Wandong vs. Wintao Communications Co | Beijing Wandong vs. Xiwang Foodstuffs Co | Beijing Wandong vs. State Grid InformationCommunication | Beijing Wandong vs. Shantou Wanshun Package |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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