Correlation Between BeiGene and Shenzhen Worldunion
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By analyzing existing cross correlation between BeiGene and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on BeiGene and Shenzhen Worldunion 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 Shenzhen Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Shenzhen Worldunion.
Diversification Opportunities for BeiGene and Shenzhen Worldunion
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion 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 Shenzhen Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of BeiGene i.e., BeiGene and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between BeiGene and Shenzhen Worldunion
Assuming the 90 days trading horizon BeiGene is expected to generate 1.58 times less return on investment than Shenzhen Worldunion. But when comparing it to its historical volatility, BeiGene is 1.62 times less risky than Shenzhen Worldunion. It trades about 0.12 of its potential returns per unit of risk. Shenzhen Worldunion Properties is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 184.00 in Shenzhen Worldunion Properties on September 2, 2024 and sell it today you would earn a total of 131.00 from holding Shenzhen Worldunion Properties or generate 71.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| BeiGene |
| Shenzhen Worldunion |
BeiGene and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Shenzhen Worldunion
The main advantage of trading using opposite BeiGene and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Shenzhen Worldunion 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 Shenzhen Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.| BeiGene vs. Hainan Airlines Co | BeiGene vs. Southchip Semiconductor Technology | BeiGene vs. Tieling Newcity Investment | BeiGene vs. GigaDevice SemiconductorBeiji |
| Shenzhen Worldunion vs. Easyhome New Retail | Shenzhen Worldunion vs. Hubei Geoway Investment | Shenzhen Worldunion vs. Guangzhou Seagull Kitchen | Shenzhen Worldunion vs. China World Trade |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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