Correlation Between Dawning Information and Beijing Bashi
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By analyzing existing cross correlation between Dawning Information Industry and Beijing Bashi Media, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Beijing Bashi.
Diversification Opportunities for Dawning Information and Beijing Bashi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dawning and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Beijing Bashi go up and down completely randomly.
Pair Corralation between Dawning Information and Beijing Bashi
Assuming the 90 days trading horizon Dawning Information Industry is expected to under-perform the Beijing Bashi. But the stock apears to be less risky and, when comparing its historical volatility, Dawning Information Industry is 1.01 times less risky than Beijing Bashi. The stock trades about -0.13 of its potential returns per unit of risk. The Beijing Bashi Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Beijing Bashi Media on September 13, 2024 and sell it today you would earn a total of 63.00 from holding Beijing Bashi Media or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Beijing Bashi Media
Performance |
| Timeline |
| Dawning Information |
| Beijing Bashi Media |
Dawning Information and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Beijing Bashi
The main advantage of trading using opposite Dawning Information and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Dhc Software Co | Dawning Information vs. ChengDu Hi Tech Development | Dawning Information vs. Sinofibers Technology Co | Dawning Information vs. Qingdao Hi Tech Moulds |
| Beijing Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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