Correlation Between BeiGene and Songz Automobile
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By analyzing existing cross correlation between BeiGene and Songz Automobile Air, you can compare the effects of market volatilities on BeiGene and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Songz Automobile.
Diversification Opportunities for BeiGene and Songz Automobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Songz is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of BeiGene i.e., BeiGene and Songz Automobile go up and down completely randomly.
Pair Corralation between BeiGene and Songz Automobile
Assuming the 90 days trading horizon BeiGene is expected to generate 1.17 times more return on investment than Songz Automobile. However, BeiGene is 1.17 times more volatile than Songz Automobile Air. It trades about 0.03 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.02 per unit of risk. If you would invest 13,788 in BeiGene on September 13, 2024 and sell it today you would earn a total of 2,401 from holding BeiGene or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Songz Automobile Air
Performance |
| Timeline |
| BeiGene |
| Songz Automobile Air |
BeiGene and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Songz Automobile
The main advantage of trading using opposite BeiGene and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
| Songz Automobile vs. BeiGene | Songz Automobile vs. Kweichow Moutai Co | Songz Automobile vs. Beijing Roborock Technology | Songz Automobile 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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