Correlation Between Beijing Baolande and Southern PublishingMedia
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By analyzing existing cross correlation between Beijing Baolande Software and Southern PublishingMedia Co, you can compare the effects of market volatilities on Beijing Baolande and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Southern PublishingMedia.
Diversification Opportunities for Beijing Baolande and Southern PublishingMedia
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Southern is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Beijing Baolande and Southern PublishingMedia
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the Southern PublishingMedia. In addition to that, Beijing Baolande is 2.93 times more volatile than Southern PublishingMedia Co. It trades about -0.03 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.07 per unit of volatility. If you would invest 1,538 in Southern PublishingMedia Co on October 28, 2024 and sell it today you would earn a total of 30.00 from holding Southern PublishingMedia Co or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Beijing Baolande Software |
| Southern PublishingMedia |
Beijing Baolande and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Southern PublishingMedia
The main advantage of trading using opposite Beijing Baolande and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia'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 |
| Southern PublishingMedia vs. Linewell Software Co | Southern PublishingMedia vs. Montage Technology Co | Southern PublishingMedia vs. Chengtun Mining Group | Southern PublishingMedia vs. Jinhui Mining Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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