Correlation Between Piotech and Beijing Shunxin
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By analyzing existing cross correlation between Piotech Inc A and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Piotech and Beijing Shunxin 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 Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Beijing Shunxin.
Diversification Opportunities for Piotech and Beijing Shunxin
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Piotech i.e., Piotech and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Piotech and Beijing Shunxin
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.53 times more return on investment than Beijing Shunxin. However, Piotech is 1.53 times more volatile than Beijing Shunxin Agriculture. It trades about -0.01 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.01 per unit of risk. If you would invest 24,210 in Piotech Inc A on September 14, 2024 and sell it today you would lose (6,839) from holding Piotech Inc A or give up 28.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Piotech Inc A vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Piotech Inc A |
| Beijing Shunxin Agri |
Piotech and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Beijing Shunxin
The main advantage of trading using opposite Piotech and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Beijing Shunxin 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 Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Piotech vs. Wuhan Hvsen Biotechnology | Piotech vs. Dongfeng Automobile Co | Piotech vs. Shanghai Rendu Biotechnology | Piotech vs. Anhui Deli Household |
| Beijing Shunxin vs. China Life Insurance | Beijing Shunxin vs. Cinda Securities Co | Beijing Shunxin vs. Piotech Inc A | Beijing Shunxin vs. Dongxing Sec 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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