Correlation Between Beijing Roborock and Weichai Heavy
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By analyzing existing cross correlation between Beijing Roborock Technology and Weichai Heavy Machinery, you can compare the effects of market volatilities on Beijing Roborock and Weichai Heavy 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 Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Weichai Heavy.
Diversification Opportunities for Beijing Roborock and Weichai Heavy
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Weichai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery 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 Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Weichai Heavy go up and down completely randomly.
Pair Corralation between Beijing Roborock and Weichai Heavy
Assuming the 90 days trading horizon Beijing Roborock is expected to generate 12.48 times less return on investment than Weichai Heavy. But when comparing it to its historical volatility, Beijing Roborock Technology is 2.13 times less risky than Weichai Heavy. It trades about 0.04 of its potential returns per unit of risk. Weichai Heavy Machinery is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,648 in Weichai Heavy Machinery on November 4, 2024 and sell it today you would earn a total of 346.00 from holding Weichai Heavy Machinery or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Weichai Heavy Machinery
Performance |
| Timeline |
| Beijing Roborock Tec |
| Weichai Heavy Machinery |
Beijing Roborock and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Weichai Heavy
The main advantage of trading using opposite Beijing Roborock and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.| Beijing Roborock vs. Dr Peng Telecom | Beijing Roborock vs. Offcn Education Technology | Beijing Roborock vs. Eastern Communications Co | Beijing Roborock vs. Allwin Telecommunication Co |
| Weichai Heavy vs. Zoy Home Furnishing | Weichai Heavy vs. Fibocom Wireless | Weichai Heavy vs. Zhangjiagang Elegant Home | Weichai Heavy vs. Beijing Kingsoft Office |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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