Correlation Between Industrial and Beijing Tiantan
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By analyzing existing cross correlation between Industrial and Commercial and Beijing Tiantan Biological, you can compare the effects of market volatilities on Industrial and Beijing Tiantan 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 with a short position of Beijing Tiantan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Beijing Tiantan.
Diversification Opportunities for Industrial and Beijing Tiantan
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Beijing is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Beijing Tiantan Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tiantan Biol and Industrial 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 and Commercial are associated (or correlated) with Beijing Tiantan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tiantan Biol has no effect on the direction of Industrial i.e., Industrial and Beijing Tiantan go up and down completely randomly.
Pair Corralation between Industrial and Beijing Tiantan
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.89 times more return on investment than Beijing Tiantan. However, Industrial and Commercial is 1.13 times less risky than Beijing Tiantan. It trades about 0.24 of its potential returns per unit of risk. Beijing Tiantan Biological is currently generating about -0.2 per unit of risk. If you would invest 607.00 in Industrial and Commercial on September 15, 2024 and sell it today you would earn a total of 32.00 from holding Industrial and Commercial or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Beijing Tiantan Biological
Performance |
| Timeline |
| Industrial and Commercial |
| Beijing Tiantan Biol |
Industrial and Beijing Tiantan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Beijing Tiantan
The main advantage of trading using opposite Industrial and Beijing Tiantan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Beijing Tiantan 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 Tiantan will offset losses from the drop in Beijing Tiantan's long position.| Industrial vs. Jiangsu Jinling Sports | Industrial vs. Cofco Biochemical Anhui | Industrial vs. China Sports Industry | Industrial vs. Guangzhou Restaurants Group |
| Beijing Tiantan vs. Industrial and Commercial | Beijing Tiantan vs. China Construction Bank | Beijing Tiantan vs. Bank of China | Beijing Tiantan vs. Agricultural Bank of |
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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