Correlation Between Beijing Wantai and Shenzhen Topway
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By analyzing existing cross correlation between Beijing Wantai Biological and Shenzhen Topway Video, you can compare the effects of market volatilities on Beijing Wantai and Shenzhen Topway 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 Beijing Wantai with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Shenzhen Topway.
Diversification Opportunities for Beijing Wantai and Shenzhen Topway
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shenzhen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Beijing Wantai and Shenzhen Topway
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 4.21 times less return on investment than Shenzhen Topway. But when comparing it to its historical volatility, Beijing Wantai Biological is 2.51 times less risky than Shenzhen Topway. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 940.00 in Shenzhen Topway Video on September 1, 2024 and sell it today you would earn a total of 82.00 from holding Shenzhen Topway Video or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Shenzhen Topway Video
Performance |
| Timeline |
| Beijing Wantai Biological |
| Shenzhen Topway Video |
Beijing Wantai and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Shenzhen Topway
The main advantage of trading using opposite Beijing Wantai and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Beijing Wantai vs. Jiangsu Xinri E Vehicle | Beijing Wantai vs. CareRay Digital Medical | Beijing Wantai vs. Changchun Engley Automobile | Beijing Wantai vs. Kontour Medical Technology |
| Shenzhen Topway vs. Eastroc Beverage Group | Shenzhen Topway vs. Dezhan HealthCare Co | Shenzhen Topway vs. Humanwell Healthcare Group | Shenzhen Topway vs. Offshore Oil Engineering |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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