Correlation Between Beijing Roborock and Hubei Yingtong
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By analyzing existing cross correlation between Beijing Roborock Technology and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Beijing Roborock and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Hubei Yingtong.
Diversification Opportunities for Beijing Roborock and Hubei Yingtong
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Hubei is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Beijing Roborock and Hubei Yingtong
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Roborock Technology is 1.12 times less risky than Hubei Yingtong. The stock trades about -0.43 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,295 in Hubei Yingtong Telecommunication on August 27, 2024 and sell it today you would lose (21.00) from holding Hubei Yingtong Telecommunication or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Beijing Roborock Tec |
| Hubei Yingtong Telec |
Beijing Roborock and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Hubei Yingtong
The main advantage of trading using opposite Beijing Roborock and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Beijing Roborock vs. CGN Nuclear Technology | Beijing Roborock vs. Changjiang Jinggong Steel | Beijing Roborock vs. Lingyuan Iron Steel | Beijing Roborock vs. Bengang Steel Plates |
| Hubei Yingtong vs. Shenzhen MYS Environmental | Hubei Yingtong vs. AVIC Fund Management | Hubei Yingtong vs. Shenzhen Bingchuan Network | Hubei Yingtong vs. Penghua Shenzhen Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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