Correlation Between BeiGene and Hengli Industrial
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By analyzing existing cross correlation between BeiGene and Hengli Industrial Development, you can compare the effects of market volatilities on BeiGene and Hengli Industrial 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 BeiGene with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hengli Industrial.
Diversification Opportunities for BeiGene and Hengli Industrial
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BeiGene and Hengli is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and BeiGene 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 BeiGene are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of BeiGene i.e., BeiGene and Hengli Industrial go up and down completely randomly.
Pair Corralation between BeiGene and Hengli Industrial
Assuming the 90 days trading horizon BeiGene is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, BeiGene is 1.29 times less risky than Hengli Industrial. The stock trades about -0.07 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Hengli Industrial Development on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Hengli Industrial Development or generate 54.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Hengli Industrial Development
Performance |
| Timeline |
| BeiGene |
| Hengli Industrial |
BeiGene and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Hengli Industrial
The main advantage of trading using opposite BeiGene and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
| Hengli Industrial vs. BeiGene | Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Beijing Roborock Technology | Hengli Industrial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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