Correlation Between Industrial Securities and BeiGene
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By analyzing existing cross correlation between Industrial Securities Co and BeiGene, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and BeiGene.
Diversification Opportunities for Industrial Securities and BeiGene
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and BeiGene is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities Co and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Industrial Securities 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 Industrial Securities 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 Industrial Securities i.e., Industrial Securities and BeiGene go up and down completely randomly.
Pair Corralation between Industrial Securities and BeiGene
Assuming the 90 days trading horizon Industrial Securities Co is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Industrial Securities Co is 1.27 times less risky than BeiGene. The stock trades about -0.02 of its potential returns per unit of risk. The BeiGene is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 16,710 in BeiGene on September 1, 2024 and sell it today you would earn a total of 1,428 from holding BeiGene or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Securities Co vs. BeiGene
Performance |
| Timeline |
| Industrial Securities |
| BeiGene |
Industrial Securities and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and BeiGene
The main advantage of trading using opposite Industrial Securities and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. BeiGene | Industrial Securities vs. Kweichow Moutai Co | Industrial Securities vs. Beijing Roborock Technology | Industrial Securities vs. G bits Network Technology |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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