Correlation Between BeiGene and Shandong Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between BeiGene and Shandong Mining Machinery, you can compare the effects of market volatilities on BeiGene and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Shandong Mining.
Diversification Opportunities for BeiGene and Shandong Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Shandong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of BeiGene i.e., BeiGene and Shandong Mining go up and down completely randomly.
Pair Corralation between BeiGene and Shandong Mining
Assuming the 90 days trading horizon BeiGene is expected to under-perform the Shandong Mining. But the stock apears to be less risky and, when comparing its historical volatility, BeiGene is 1.08 times less risky than Shandong Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Shandong Mining Machinery is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Shandong Mining Machinery on August 27, 2024 and sell it today you would lose (8.00) from holding Shandong Mining Machinery or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Shandong Mining Machinery
Performance |
| Timeline |
| BeiGene |
| Shandong Mining Machinery |
BeiGene and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Shandong Mining
The main advantage of trading using opposite BeiGene and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| BeiGene vs. Industrial and Commercial | BeiGene vs. China Construction Bank | BeiGene vs. Agricultural Bank of | BeiGene vs. Bank of China |
| Shandong Mining vs. Jinhui Mining Co | Shandong Mining vs. Chenzhou Jingui Silver | Shandong Mining vs. Huaibei Mining Holdings | Shandong Mining vs. Tianjin Silvery Dragon |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |