Correlation Between Beijing YanDong and Chinese Universe
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and Chinese Universe Publishing, you can compare the effects of market volatilities on Beijing YanDong and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and Chinese Universe.
Diversification Opportunities for Beijing YanDong and Chinese Universe
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Chinese is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and Chinese Universe go up and down completely randomly.
Pair Corralation between Beijing YanDong and Chinese Universe
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to generate 1.58 times more return on investment than Chinese Universe. However, Beijing YanDong is 1.58 times more volatile than Chinese Universe Publishing. It trades about 0.05 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.21 per unit of risk. If you would invest 1,869 in Beijing YanDong MicroElectronic on November 6, 2024 and sell it today you would earn a total of 34.00 from holding Beijing YanDong MicroElectronic or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. Chinese Universe Publishing
Performance |
| Timeline |
| Beijing YanDong Micr |
| Chinese Universe Pub |
Beijing YanDong and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and Chinese Universe
The main advantage of trading using opposite Beijing YanDong and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Beijing YanDong vs. Thinkon Semiconductor Jinzhou | Beijing YanDong vs. Jiajia Food Group | Beijing YanDong vs. Air China Ltd | Beijing YanDong vs. Ingenic Semiconductor |
| Chinese Universe vs. Zoje Resources Investment | Chinese Universe vs. Hubei Geoway Investment | Chinese Universe vs. Anhui Transport Consulting | Chinese Universe vs. Hubeiyichang Transportation Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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