Correlation Between Beijing Wantai and Qinghaihuading Industrial
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By analyzing existing cross correlation between Beijing Wantai Biological and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Beijing Wantai and Qinghaihuading 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 Beijing Wantai with a short position of Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Qinghaihuading Industrial.
Diversification Opportunities for Beijing Wantai and Qinghaihuading Industrial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Qinghaihuading is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Beijing Wantai and Qinghaihuading Industrial
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 1.49 times less return on investment than Qinghaihuading Industrial. But when comparing it to its historical volatility, Beijing Wantai Biological is 1.26 times less risky than Qinghaihuading Industrial. It trades about 0.11 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Qinghaihuading Industrial Co on September 5, 2024 and sell it today you would earn a total of 29.00 from holding Qinghaihuading Industrial Co or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Beijing Wantai Biological |
| Qinghaihuading Industrial |
Beijing Wantai and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Qinghaihuading Industrial
The main advantage of trading using opposite Beijing Wantai and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Qinghaihuading 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Beijing Wantai vs. Youyou Foods Co | Beijing Wantai vs. Caihong Display Devices | Beijing Wantai vs. New Hope Dairy | Beijing Wantai vs. HaiXin Foods Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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