Correlation Between Beijing Baolande and Shenzhen
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By analyzing existing cross correlation between Beijing Baolande Software and Shenzhen AV Display Co, you can compare the effects of market volatilities on Beijing Baolande and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Shenzhen.
Diversification Opportunities for Beijing Baolande and Shenzhen
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Shenzhen is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Shenzhen go up and down completely randomly.
Pair Corralation between Beijing Baolande and Shenzhen
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the Shenzhen. In addition to that, Beijing Baolande is 1.4 times more volatile than Shenzhen AV Display Co. It trades about -0.06 of its total potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.07 per unit of volatility. If you would invest 3,427 in Shenzhen AV Display Co on October 30, 2024 and sell it today you would lose (307.00) from holding Shenzhen AV Display Co or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Beijing Baolande Software |
| Shenzhen AV Display |
Beijing Baolande and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Shenzhen
The main advantage of trading using opposite Beijing Baolande and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen'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 |
| Shenzhen vs. Chengdu Kanghua Biological | Shenzhen vs. Suzhou Novoprotein Scientific | Shenzhen vs. Aluminum Corp of | Shenzhen vs. COL Digital Publishing |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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