Correlation Between Beijing Wantai and SAIC
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By analyzing existing cross correlation between Beijing Wantai Biological and SAIC Motor Corp, you can compare the effects of market volatilities on Beijing Wantai and SAIC 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 SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and SAIC.
Diversification Opportunities for Beijing Wantai and SAIC
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and SAIC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp 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 SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and SAIC go up and down completely randomly.
Pair Corralation between Beijing Wantai and SAIC
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 1.42 times less return on investment than SAIC. In addition to that, Beijing Wantai is 1.29 times more volatile than SAIC Motor Corp. It trades about 0.02 of its total potential returns per unit of risk. SAIC Motor Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,335 in SAIC Motor Corp on October 16, 2024 and sell it today you would earn a total of 292.00 from holding SAIC Motor Corp or generate 21.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. SAIC Motor Corp
Performance |
| Timeline |
| Beijing Wantai Biological |
| SAIC Motor Corp |
Beijing Wantai and SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and SAIC
The main advantage of trading using opposite Beijing Wantai and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC's long position.| Beijing Wantai vs. Dhc Software Co | Beijing Wantai vs. Zhejiang Kingland Pipeline | Beijing Wantai vs. Malion New Materials | Beijing Wantai vs. Fujian Boss Software |
| SAIC vs. Kontour Medical Technology | SAIC vs. Chongqing Shunbo Aluminum | SAIC vs. Winner Medical Co | SAIC vs. Eyebright 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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