Correlation Between Beken Corp and Industrial
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By analyzing existing cross correlation between Beken Corp and Industrial and Commercial, you can compare the effects of market volatilities on Beken Corp and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beken Corp and Industrial.
Diversification Opportunities for Beken Corp and Industrial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beken and Industrial is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Beken Corp and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Beken Corp i.e., Beken Corp and Industrial go up and down completely randomly.
Pair Corralation between Beken Corp and Industrial
Assuming the 90 days trading horizon Beken Corp is expected to generate 4.09 times more return on investment than Industrial. However, Beken Corp is 4.09 times more volatile than Industrial and Commercial. It trades about 0.02 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of risk. If you would invest 3,363 in Beken Corp on October 15, 2024 and sell it today you would lose (19.00) from holding Beken Corp or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beken Corp vs. Industrial and Commercial
Performance |
| Timeline |
| Beken Corp |
| Industrial and Commercial |
Beken Corp and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beken Corp and Industrial
The main advantage of trading using opposite Beken Corp and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beken Corp position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Huizhou Speed Wireless | Industrial vs. Winner Medical Co | Industrial vs. Quectel Wireless Solutions | Industrial vs. Kontour Medical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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