Correlation Between Railway Signal and BeiGene
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By analyzing existing cross correlation between Railway Signal Communication and BeiGene, you can compare the effects of market volatilities on Railway Signal and BeiGene 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 Railway Signal with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Railway Signal and BeiGene.
Diversification Opportunities for Railway Signal and BeiGene
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Railway and BeiGene is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Railway Signal Communication and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Railway Signal 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 Railway Signal Communication are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Railway Signal i.e., Railway Signal and BeiGene go up and down completely randomly.
Pair Corralation between Railway Signal and BeiGene
Assuming the 90 days trading horizon Railway Signal is expected to generate 4.69 times less return on investment than BeiGene. But when comparing it to its historical volatility, Railway Signal Communication is 1.02 times less risky than BeiGene. It trades about 0.02 of its potential returns per unit of risk. BeiGene is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,584 in BeiGene on September 26, 2024 and sell it today you would earn a total of 4,416 from holding BeiGene or generate 38.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Railway Signal Communication vs. BeiGene
Performance |
| Timeline |
| Railway Signal Commu |
| BeiGene |
Railway Signal and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Railway Signal and BeiGene
The main advantage of trading using opposite Railway Signal and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Railway Signal position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Railway Signal vs. Kweichow Moutai Co | Railway Signal vs. Shenzhen Mindray Bio Medical | Railway Signal vs. Jiangsu Pacific Quartz | Railway Signal vs. G bits Network Technology |
| BeiGene vs. Beijing Mainstreets Investment | BeiGene vs. Shenzhen SDG Information | BeiGene vs. Xiandai Investment Co | BeiGene vs. Zoje Resources Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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