Correlation Between Beijing Roborock and Xilinmen Furniture
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By analyzing existing cross correlation between Beijing Roborock Technology and Xilinmen Furniture Co, you can compare the effects of market volatilities on Beijing Roborock and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Xilinmen Furniture.
Diversification Opportunities for Beijing Roborock and Xilinmen Furniture
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Xilinmen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Beijing Roborock and Xilinmen Furniture
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.59 times more return on investment than Xilinmen Furniture. However, Beijing Roborock is 1.59 times more volatile than Xilinmen Furniture Co. It trades about 0.09 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.04 per unit of risk. If you would invest 22,030 in Beijing Roborock Technology on November 3, 2024 and sell it today you would earn a total of 849.00 from holding Beijing Roborock Technology or generate 3.85% 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. Xilinmen Furniture Co
Performance |
| Timeline |
| Beijing Roborock Tec |
| Xilinmen Furniture |
Beijing Roborock and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Xilinmen Furniture
The main advantage of trading using opposite Beijing Roborock and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Beijing Roborock vs. Liaoning Chengda Biotechnology | Beijing Roborock vs. Jinhe Biotechnology Co | Beijing Roborock vs. Hengli Industrial Development | Beijing Roborock vs. Zhengzhou Coal Mining |
| Xilinmen Furniture vs. Dymatic Chemicals | Xilinmen Furniture vs. Baoshan Iron Steel | Xilinmen Furniture vs. Hubei Xingfa Chemicals | Xilinmen Furniture vs. Qiaoyin Environmental Tech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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