Correlation Between Beijing Wantai and Anshan Senyuan
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By analyzing existing cross correlation between Beijing Wantai Biological and Anshan Senyuan Road, you can compare the effects of market volatilities on Beijing Wantai and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Anshan Senyuan.
Diversification Opportunities for Beijing Wantai and Anshan Senyuan
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Anshan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Beijing Wantai and Anshan Senyuan
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to generate 0.66 times more return on investment than Anshan Senyuan. However, Beijing Wantai Biological is 1.53 times less risky than Anshan Senyuan. It trades about -0.22 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.38 per unit of risk. If you would invest 7,480 in Beijing Wantai Biological on October 15, 2024 and sell it today you would lose (692.00) from holding Beijing Wantai Biological or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Anshan Senyuan Road
Performance |
| Timeline |
| Beijing Wantai Biological |
| Anshan Senyuan Road |
Beijing Wantai and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Anshan Senyuan
The main advantage of trading using opposite Beijing Wantai and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Beijing Wantai vs. Luyin Investment Group | Beijing Wantai vs. Harbin Hatou Investment | Beijing Wantai vs. China Asset Management | Beijing Wantai vs. Dezhan HealthCare Co |
| Anshan Senyuan vs. Chengdu Kanghua Biological | Anshan Senyuan vs. Beijing Wantai Biological | Anshan Senyuan vs. Suzhou Novoprotein Scientific | Anshan Senyuan vs. Aluminum Corp of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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