Correlation Between Beijing Baolande and Shanghai Rightongene
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By analyzing existing cross correlation between Beijing Baolande Software and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Beijing Baolande and Shanghai Rightongene 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 Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Shanghai Rightongene.
Diversification Opportunities for Beijing Baolande and Shanghai Rightongene
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Shanghai is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Beijing Baolande and Shanghai Rightongene
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 2.14 times more return on investment than Shanghai Rightongene. However, Beijing Baolande is 2.14 times more volatile than Shanghai Rightongene Biotechnology. It trades about 0.19 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about 0.36 per unit of risk. If you would invest 2,414 in Beijing Baolande Software on November 5, 2024 and sell it today you would earn a total of 298.00 from holding Beijing Baolande Software or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Beijing Baolande Software |
| Shanghai Rightongene |
Beijing Baolande and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Shanghai Rightongene
The main advantage of trading using opposite Beijing Baolande and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Shanghai Rightongene 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 Shanghai Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Beijing Baolande vs. Xiangyang Automobile Bearing | Beijing Baolande vs. Quectel Wireless Solutions | Beijing Baolande vs. China Mobile Limited | Beijing Baolande vs. Runjian Communication Co |
| Shanghai Rightongene vs. Sinomach Automobile Co | Shanghai Rightongene vs. CICT Mobile Communication | Shanghai Rightongene vs. China Satellite Communications | Shanghai Rightongene vs. Dr Peng Telecom |
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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