Correlation Between Beijing Baolande and Jiangsu Yueda
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By analyzing existing cross correlation between Beijing Baolande Software and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Beijing Baolande and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Jiangsu Yueda.
Diversification Opportunities for Beijing Baolande and Jiangsu Yueda
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Jiangsu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Beijing Baolande and Jiangsu Yueda
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the Jiangsu Yueda. In addition to that, Beijing Baolande is 1.59 times more volatile than Jiangsu Yueda Investment. It trades about -0.01 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.01 per unit of volatility. If you would invest 467.00 in Jiangsu Yueda Investment on October 28, 2024 and sell it today you would lose (41.00) from holding Jiangsu Yueda Investment or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Beijing Baolande Software |
| Jiangsu Yueda Investment |
Beijing Baolande and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Jiangsu Yueda
The main advantage of trading using opposite Beijing Baolande and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. China Construction Bank | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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