Correlation Between Beijing Roborock and Nanhua Bio
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By analyzing existing cross correlation between Beijing Roborock Technology and Nanhua Bio Medicine, you can compare the effects of market volatilities on Beijing Roborock and Nanhua Bio 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 Roborock with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Nanhua Bio.
Diversification Opportunities for Beijing Roborock and Nanhua Bio
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Nanhua is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Beijing Roborock 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 Roborock Technology are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Nanhua Bio go up and down completely randomly.
Pair Corralation between Beijing Roborock and Nanhua Bio
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.06 times more return on investment than Nanhua Bio. However, Beijing Roborock is 1.06 times more volatile than Nanhua Bio Medicine. It trades about 0.02 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.02 per unit of risk. If you would invest 22,308 in Beijing Roborock Technology on September 13, 2024 and sell it today you would earn a total of 143.00 from holding Beijing Roborock Technology or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Beijing Roborock Tec |
| Nanhua Bio Medicine |
Beijing Roborock and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Nanhua Bio
The main advantage of trading using opposite Beijing Roborock and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Beijing Roborock vs. Sino Platinum Metals Co | Beijing Roborock vs. Hengli Industrial Development | Beijing Roborock vs. Hang Xiao Steel | Beijing Roborock vs. Qiaoyin Environmental Tech |
| Nanhua Bio vs. Allgens Medical Technology | Nanhua Bio vs. Long Yuan Construction | Nanhua Bio vs. Sinomach General Machinery | Nanhua Bio vs. Air China Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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