Correlation Between Beijing Wantai and Jiangsu Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wantai Biological and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Beijing Wantai and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Jiangsu Seagull.
Diversification Opportunities for Beijing Wantai and Jiangsu Seagull
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Jiangsu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Beijing Wantai and Jiangsu Seagull
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to generate 0.78 times more return on investment than Jiangsu Seagull. However, Beijing Wantai Biological is 1.28 times less risky than Jiangsu Seagull. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about -0.01 per unit of risk. If you would invest 4,782 in Beijing Wantai Biological on September 26, 2024 and sell it today you would earn a total of 2,697 from holding Beijing Wantai Biological or generate 56.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Beijing Wantai Biological |
| Jiangsu Seagull Cooling |
Beijing Wantai and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Jiangsu Seagull
The main advantage of trading using opposite Beijing Wantai and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Beijing Wantai vs. Industrial and Commercial | Beijing Wantai vs. Agricultural Bank of | Beijing Wantai vs. China Construction Bank | Beijing Wantai vs. Bank of China |
| Jiangsu Seagull vs. Chengdu Kanghua Biological | Jiangsu Seagull vs. Beijing Wantai Biological | Jiangsu Seagull vs. Suzhou Novoprotein Scientific | Jiangsu Seagull 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |