Correlation Between Beijing Roborock and China World
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By analyzing existing cross correlation between Beijing Roborock Technology and China World Trade, you can compare the effects of market volatilities on Beijing Roborock and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and China World.
Diversification Opportunities for Beijing Roborock and China World
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and China is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and China World go up and down completely randomly.
Pair Corralation between Beijing Roborock and China World
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the China World. In addition to that, Beijing Roborock is 1.98 times more volatile than China World Trade. It trades about -0.13 of its total potential returns per unit of risk. China World Trade is currently generating about -0.05 per unit of volatility. If you would invest 2,282 in China World Trade on September 3, 2024 and sell it today you would lose (36.00) from holding China World Trade or give up 1.58% 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. China World Trade
Performance |
| Timeline |
| Beijing Roborock Tec |
| China World Trade |
Beijing Roborock and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and China World
The main advantage of trading using opposite Beijing Roborock and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Beijing Roborock vs. Uxi Unicomp Technology | Beijing Roborock vs. Soyea Technology Co | Beijing Roborock vs. Eastern Air Logistics | Beijing Roborock vs. Jiujiang Shanshui Technology |
| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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