Correlation Between Industrial and Beijing Bashi
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By analyzing existing cross correlation between Industrial and Commercial and Beijing Bashi Media, you can compare the effects of market volatilities on Industrial and Beijing Bashi 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 Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Beijing Bashi.
Diversification Opportunities for Industrial and Beijing Bashi
0.28 | Correlation Coefficient |
Modest 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 Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Industrial i.e., Industrial and Beijing Bashi go up and down completely randomly.
Pair Corralation between Industrial and Beijing Bashi
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.37 times more return on investment than Beijing Bashi. However, Industrial and Commercial is 2.7 times less risky than Beijing Bashi. It trades about 0.08 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.03 per unit of risk. If you would invest 403.00 in Industrial and Commercial on September 3, 2024 and sell it today you would earn a total of 212.00 from holding Industrial and Commercial or generate 52.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Beijing Bashi Media
Performance |
| Timeline |
| Industrial and Commercial |
| Beijing Bashi Media |
Industrial and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Beijing Bashi
The main advantage of trading using opposite Industrial and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| Industrial vs. Tengda Construction Group | Industrial vs. Hongrun Construction Group | Industrial vs. HUAQIN TECHNOLOGY LTD | Industrial vs. Sinomach General Machinery |
| Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. China Mobile Limited | Beijing Bashi vs. Industrial and Commercial | Beijing Bashi vs. China Life Insurance |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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