Correlation Between BeiGene and Zhejiang Mtcn
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By analyzing existing cross correlation between BeiGene and Zhejiang Mtcn Technology, you can compare the effects of market volatilities on BeiGene and Zhejiang Mtcn 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 Zhejiang Mtcn. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Zhejiang Mtcn.
Diversification Opportunities for BeiGene and Zhejiang Mtcn
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BeiGene and Zhejiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Zhejiang Mtcn Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Mtcn Technology 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 Zhejiang Mtcn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Mtcn Technology has no effect on the direction of BeiGene i.e., BeiGene and Zhejiang Mtcn go up and down completely randomly.
Pair Corralation between BeiGene and Zhejiang Mtcn
Assuming the 90 days trading horizon BeiGene is expected to generate 0.9 times more return on investment than Zhejiang Mtcn. However, BeiGene is 1.11 times less risky than Zhejiang Mtcn. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Mtcn Technology is currently generating about 0.07 per unit of risk. If you would invest 17,092 in BeiGene on September 4, 2024 and sell it today you would earn a total of 1,041 from holding BeiGene or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Zhejiang Mtcn Technology
Performance |
| Timeline |
| BeiGene |
| Zhejiang Mtcn Technology |
BeiGene and Zhejiang Mtcn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Zhejiang Mtcn
The main advantage of trading using opposite BeiGene and Zhejiang Mtcn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Zhejiang Mtcn 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 Zhejiang Mtcn will offset losses from the drop in Zhejiang Mtcn's long position.| BeiGene vs. Harbin Air Conditioning | BeiGene vs. Shandong Sanyuan Biotechnology | BeiGene vs. MayAir Technology Co | BeiGene vs. Guangzhou Haige Communications |
| Zhejiang Mtcn vs. Kingsignal Technology Co | Zhejiang Mtcn vs. Zhejiang Kingland Pipeline | Zhejiang Mtcn vs. Hubei Xingfa Chemicals | Zhejiang Mtcn vs. ROPEOK Technology Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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