Correlation Between Road Environment and BeiGene
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By analyzing existing cross correlation between Road Environment Technology and BeiGene, you can compare the effects of market volatilities on Road Environment and BeiGene 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 Road Environment with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and BeiGene.
Diversification Opportunities for Road Environment and BeiGene
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Road and BeiGene is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Road Environment 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 Road Environment Technology are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Road Environment i.e., Road Environment and BeiGene go up and down completely randomly.
Pair Corralation between Road Environment and BeiGene
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the BeiGene. In addition to that, Road Environment is 1.13 times more volatile than BeiGene. It trades about -0.1 of its total potential returns per unit of risk. BeiGene is currently generating about 0.03 per unit of volatility. If you would invest 15,404 in BeiGene on August 27, 2024 and sell it today you would earn a total of 1,239 from holding BeiGene or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. BeiGene
Performance |
| Timeline |
| Road Environment Tec |
| BeiGene |
Road Environment and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and BeiGene
The main advantage of trading using opposite Road Environment and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Road Environment vs. Jiangnan Mould Plastic | Road Environment vs. Cangzhou Mingzhu Plastic | Road Environment vs. Suzhou Mingzhi Technology | Road Environment vs. Renxin New Material |
| BeiGene vs. China Asset Management | BeiGene vs. Shandong Hi Speed RoadBridge | BeiGene vs. Road Environment Technology | BeiGene vs. Cicc Fund Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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