Correlation Between Beijing Roborock and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Roborock Technology and Changchun Faway Automobile, you can compare the effects of market volatilities on Beijing Roborock and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Changchun Faway.
Diversification Opportunities for Beijing Roborock and Changchun Faway
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Changchun is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Changchun Faway go up and down completely randomly.
Pair Corralation between Beijing Roborock and Changchun Faway
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the Changchun Faway. In addition to that, Beijing Roborock is 1.51 times more volatile than Changchun Faway Automobile. It trades about -0.09 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.12 per unit of volatility. If you would invest 865.00 in Changchun Faway Automobile on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Changchun Faway Automobile or generate 11.21% 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. Changchun Faway Automobile
Performance |
| Timeline |
| Beijing Roborock Tec |
| Changchun Faway Auto |
Beijing Roborock and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Changchun Faway
The main advantage of trading using opposite Beijing Roborock and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway'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 |
| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |