Correlation Between Beijing Roborock and Chengdu Xinzhu
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By analyzing existing cross correlation between Beijing Roborock Technology and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Beijing Roborock and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Chengdu Xinzhu.
Diversification Opportunities for Beijing Roborock and Chengdu Xinzhu
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Chengdu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Beijing Roborock and Chengdu Xinzhu
Assuming the 90 days trading horizon Beijing Roborock is expected to generate 8.48 times less return on investment than Chengdu Xinzhu. But when comparing it to its historical volatility, Beijing Roborock Technology is 1.71 times less risky than Chengdu Xinzhu. It trades about 0.04 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Chengdu Xinzhu RoadBridge on November 4, 2024 and sell it today you would earn a total of 65.00 from holding Chengdu Xinzhu RoadBridge or generate 13.98% 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. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Beijing Roborock Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chengdu Xinzhu RoadBridge |
Beijing Roborock and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Chengdu Xinzhu
The main advantage of trading using opposite Beijing Roborock and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu'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 |
| Chengdu Xinzhu vs. Jiugui Liquor Co | Chengdu Xinzhu vs. Wuhan Yangtze Communication | Chengdu Xinzhu vs. Jiangsu GDK Biotechnology | Chengdu Xinzhu vs. Yili Chuanning Biotechnology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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