Correlation Between Beijing YanDong and XiaMen HongXin
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Beijing YanDong and XiaMen HongXin 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 YanDong with a short position of XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and XiaMen HongXin.
Diversification Opportunities for Beijing YanDong and XiaMen HongXin
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and XiaMen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron and Beijing YanDong 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 YanDong MicroElectronic are associated (or correlated) with XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Beijing YanDong and XiaMen HongXin
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to generate 0.44 times more return on investment than XiaMen HongXin. However, Beijing YanDong MicroElectronic is 2.25 times less risky than XiaMen HongXin. It trades about -0.06 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.03 per unit of risk. If you would invest 2,070 in Beijing YanDong MicroElectronic on October 29, 2024 and sell it today you would lose (68.00) from holding Beijing YanDong MicroElectronic or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Beijing YanDong Micr |
| XiaMen HongXin Electron |
Beijing YanDong and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and XiaMen HongXin
The main advantage of trading using opposite Beijing YanDong and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Beijing YanDong vs. Semiconductor Manufacturing Electronics | Beijing YanDong vs. Chongqing Road Bridge | Beijing YanDong vs. LianChuang Electronic Technology | Beijing YanDong vs. Road Environment Technology |
| XiaMen HongXin vs. Shenzhen Bioeasy Biotechnology | XiaMen HongXin vs. Bloomage Biotechnology Corp | XiaMen HongXin vs. Maccura Biotechnology Co | XiaMen HongXin vs. Shanghai Rightongene 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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