Correlation Between Beijing Baolande and Nanjing Vishee
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By analyzing existing cross correlation between Beijing Baolande Software and Nanjing Vishee Medical, you can compare the effects of market volatilities on Beijing Baolande and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Nanjing Vishee.
Diversification Opportunities for Beijing Baolande and Nanjing Vishee
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Nanjing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Beijing Baolande i.e., Beijing Baolande and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Beijing Baolande and Nanjing Vishee
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 1.36 times more return on investment than Nanjing Vishee. However, Beijing Baolande is 1.36 times more volatile than Nanjing Vishee Medical. It trades about 0.07 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about 0.03 per unit of risk. If you would invest 2,005 in Beijing Baolande Software on October 18, 2024 and sell it today you would earn a total of 665.00 from holding Beijing Baolande Software or generate 33.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Beijing Baolande Software |
| Nanjing Vishee Medical |
Beijing Baolande and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Nanjing Vishee
The main advantage of trading using opposite Beijing Baolande and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Beijing Baolande vs. AUPU Home Style | Beijing Baolande vs. China Building Material | Beijing Baolande vs. SSAW Hotels Resorts | Beijing Baolande vs. UE Furniture Co |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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