Correlation Between BeiGene and Changchun High
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By analyzing existing cross correlation between BeiGene and Changchun High New, you can compare the effects of market volatilities on BeiGene and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Changchun High.
Diversification Opportunities for BeiGene and Changchun High
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between BeiGene and Changchun is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of BeiGene i.e., BeiGene and Changchun High go up and down completely randomly.
Pair Corralation between BeiGene and Changchun High
Assuming the 90 days trading horizon BeiGene is expected to generate 2.32 times more return on investment than Changchun High. However, BeiGene is 2.32 times more volatile than Changchun High New. It trades about 0.4 of its potential returns per unit of risk. Changchun High New is currently generating about -0.21 per unit of risk. If you would invest 15,935 in BeiGene on November 3, 2024 and sell it today you would earn a total of 3,134 from holding BeiGene or generate 19.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Changchun High New
Performance |
| Timeline |
| BeiGene |
| Changchun High New |
BeiGene and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Changchun High
The main advantage of trading using opposite BeiGene and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| BeiGene vs. Tsingtao Brewery Co | BeiGene vs. Beijing Yanjing Brewery | BeiGene vs. Dynagreen Environmental Protection | BeiGene vs. Chongqing Brewery Co |
| Changchun High vs. Shuhua Sports Co | Changchun High vs. Zhejiang Construction Investment | Changchun High vs. Fujian Longzhou Transportation | Changchun High vs. Sportsoul Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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