Correlation Between Beijing Baolande and Lootom Telcovideo
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By analyzing existing cross correlation between Beijing Baolande Software and Lootom Telcovideo Network, you can compare the effects of market volatilities on Beijing Baolande and Lootom Telcovideo 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 Baolande with a short position of Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Lootom Telcovideo.
Diversification Opportunities for Beijing Baolande and Lootom Telcovideo
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Lootom is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network and Beijing Baolande 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 Baolande Software are associated (or correlated) with Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Beijing Baolande and Lootom Telcovideo
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the Lootom Telcovideo. In addition to that, Beijing Baolande is 1.1 times more volatile than Lootom Telcovideo Network. It trades about -0.06 of its total potential returns per unit of risk. Lootom Telcovideo Network is currently generating about -0.01 per unit of volatility. If you would invest 861.00 in Lootom Telcovideo Network on October 30, 2024 and sell it today you would lose (32.00) from holding Lootom Telcovideo Network or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Beijing Baolande Software |
| Lootom Telcovideo Network |
Beijing Baolande and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Lootom Telcovideo
The main advantage of trading using opposite Beijing Baolande and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
| Lootom Telcovideo vs. Sunny Loan Top | Lootom Telcovideo vs. Omnijoi Media Corp | Lootom Telcovideo vs. Changjiang Publishing Media | Lootom Telcovideo vs. Qiaoyin Environmental Tech |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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