Correlation Between Ye Chiu and Beijing Bewinner
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By analyzing existing cross correlation between Ye Chiu Metal and Beijing Bewinner Communications, you can compare the effects of market volatilities on Ye Chiu and Beijing Bewinner 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 Ye Chiu with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Beijing Bewinner.
Diversification Opportunities for Ye Chiu and Beijing Bewinner
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Ye Chiu i.e., Ye Chiu and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Ye Chiu and Beijing Bewinner
Assuming the 90 days trading horizon Ye Chiu is expected to generate 27.39 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Ye Chiu Metal is 1.22 times less risky than Beijing Bewinner. It trades about 0.0 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Beijing Bewinner Communications on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Beijing Bewinner Communications or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Ye Chiu Metal |
| Beijing Bewinner Com |
Ye Chiu and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Beijing Bewinner
The main advantage of trading using opposite Ye Chiu and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| Beijing Bewinner vs. Focus Media Information | Beijing Bewinner vs. Guocheng Mining Co | Beijing Bewinner vs. JiShi Media Co | Beijing Bewinner vs. Ye Chiu Metal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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