Correlation Between Allied Machinery and Beijing Roborock
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By analyzing existing cross correlation between Allied Machinery Co and Beijing Roborock Technology, you can compare the effects of market volatilities on Allied Machinery and Beijing Roborock 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 Allied Machinery with a short position of Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Beijing Roborock.
Diversification Opportunities for Allied Machinery and Beijing Roborock
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allied and Beijing is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Allied Machinery i.e., Allied Machinery and Beijing Roborock go up and down completely randomly.
Pair Corralation between Allied Machinery and Beijing Roborock
Assuming the 90 days trading horizon Allied Machinery Co is expected to under-perform the Beijing Roborock. But the stock apears to be less risky and, when comparing its historical volatility, Allied Machinery Co is 1.36 times less risky than Beijing Roborock. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Roborock Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 19,238 in Beijing Roborock Technology on September 28, 2024 and sell it today you would earn a total of 1,762 from holding Beijing Roborock Technology or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Allied Machinery Co vs. Beijing Roborock Technology
Performance |
| Timeline |
| Allied Machinery |
| Beijing Roborock Tec |
Allied Machinery and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Beijing Roborock
The main advantage of trading using opposite Allied Machinery and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Allied Machinery vs. Bank of China | Allied Machinery vs. Kweichow Moutai Co | Allied Machinery vs. PetroChina Co Ltd | Allied Machinery vs. Bank of Communications |
| Beijing Roborock vs. Qijing Machinery | Beijing Roborock vs. Ningbo Construction Co | Beijing Roborock vs. Allied Machinery Co | Beijing Roborock vs. Shanghai Construction Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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