Correlation Between Beken Corp and Jiangsu Zhongtian
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By analyzing existing cross correlation between Beken Corp and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Beken Corp and Jiangsu Zhongtian 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 Beken Corp with a short position of Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beken Corp and Jiangsu Zhongtian.
Diversification Opportunities for Beken Corp and Jiangsu Zhongtian
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beken and Jiangsu is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Beken Corp and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian and Beken Corp 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 Beken Corp are associated (or correlated) with Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Beken Corp i.e., Beken Corp and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Beken Corp and Jiangsu Zhongtian
Assuming the 90 days trading horizon Beken Corp is expected to generate 4.72 times more return on investment than Jiangsu Zhongtian. However, Beken Corp is 4.72 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.68 per unit of risk. If you would invest 3,234 in Beken Corp on October 14, 2024 and sell it today you would earn a total of 110.00 from holding Beken Corp or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beken Corp vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Beken Corp |
| Jiangsu Zhongtian |
Beken Corp and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beken Corp and Jiangsu Zhongtian
The main advantage of trading using opposite Beken Corp and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beken Corp position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Beken Corp vs. Biwin Storage Technology | Beken Corp vs. PetroChina Co Ltd | Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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