Correlation Between Piotech and Beijing Mainstreets
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By analyzing existing cross correlation between Piotech Inc A and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Piotech and Beijing Mainstreets 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 Piotech with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Beijing Mainstreets.
Diversification Opportunities for Piotech and Beijing Mainstreets
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Piotech 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 Piotech Inc A are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Piotech i.e., Piotech and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Piotech and Beijing Mainstreets
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.14 times less risky than Beijing Mainstreets. The stock trades about -0.28 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 288.00 in Beijing Mainstreets Investment on September 15, 2024 and sell it today you would lose (39.00) from holding Beijing Mainstreets Investment or give up 13.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Piotech Inc A |
| Beijing Mainstreets |
Piotech and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Beijing Mainstreets
The main advantage of trading using opposite Piotech and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Piotech vs. Dezhan HealthCare Co | Piotech vs. Heilongjiang Publishing Media | Piotech vs. Jiangsu Phoenix Publishing | Piotech vs. Chinese Universe Publishing |
| Beijing Mainstreets vs. V V Food | Beijing Mainstreets vs. Juewei Food Co | Beijing Mainstreets vs. Sichuan Fulin Transportation | Beijing Mainstreets vs. Xinjiang Tianrun Dairy |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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