Correlation Between Beijing YanDong and Dongxing Sec
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and Dongxing Sec Co, you can compare the effects of market volatilities on Beijing YanDong and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and Dongxing Sec.
Diversification Opportunities for Beijing YanDong and Dongxing Sec
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Dongxing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and Dongxing Sec go up and down completely randomly.
Pair Corralation between Beijing YanDong and Dongxing Sec
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to under-perform the Dongxing Sec. In addition to that, Beijing YanDong is 1.26 times more volatile than Dongxing Sec Co. It trades about -0.16 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.2 per unit of volatility. If you would invest 1,210 in Dongxing Sec Co on October 11, 2024 and sell it today you would lose (144.00) from holding Dongxing Sec Co or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. Dongxing Sec Co
Performance |
| Timeline |
| Beijing YanDong Micr |
| Dongxing Sec |
Beijing YanDong and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and Dongxing Sec
The main advantage of trading using opposite Beijing YanDong and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Beijing YanDong vs. Ping An Insurance | Beijing YanDong vs. China Life Insurance | Beijing YanDong vs. Hubei Geoway Investment | Beijing YanDong vs. Penyao Environmental Protection |
| Dongxing Sec vs. Shijiazhuang Tonhe Electronics | Dongxing Sec vs. Financial Street Holdings | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. Beijing YanDong MicroElectronic |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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