Correlation Between Beijing Baolande and ButOne Information
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By analyzing existing cross correlation between Beijing Baolande Software and ButOne Information Corp, you can compare the effects of market volatilities on Beijing Baolande and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and ButOne Information.
Diversification Opportunities for Beijing Baolande and ButOne Information
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and ButOne is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and ButOne Information go up and down completely randomly.
Pair Corralation between Beijing Baolande and ButOne Information
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the ButOne Information. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Baolande Software is 1.06 times less risky than ButOne Information. The stock trades about -0.3 of its potential returns per unit of risk. The ButOne Information Corp is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 2,498 in ButOne Information Corp on October 14, 2024 and sell it today you would lose (550.00) from holding ButOne Information Corp or give up 22.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. ButOne Information Corp
Performance |
| Timeline |
| Beijing Baolande Software |
| ButOne Information Corp |
Beijing Baolande and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and ButOne Information
The main advantage of trading using opposite Beijing Baolande and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Beijing Baolande vs. GUOMAI Culture Media | Beijing Baolande vs. Shuhua Sports Co | Beijing Baolande vs. Zhejiang Construction Investment | Beijing Baolande vs. Vanfund Urban Investment |
| ButOne Information vs. Beijing Baolande Software | ButOne Information vs. Glodon Software Co | ButOne Information vs. Chengdu Xingrong Investment | ButOne Information vs. Jiangsu Yueda 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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