Correlation Between BeiGene and Beijing SuperMap
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By analyzing existing cross correlation between BeiGene and Beijing SuperMap Software, you can compare the effects of market volatilities on BeiGene and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Beijing SuperMap.
Diversification Opportunities for BeiGene and Beijing SuperMap
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BeiGene and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of BeiGene i.e., BeiGene and Beijing SuperMap go up and down completely randomly.
Pair Corralation between BeiGene and Beijing SuperMap
Assuming the 90 days trading horizon BeiGene is expected to generate 0.93 times more return on investment than Beijing SuperMap. However, BeiGene is 1.08 times less risky than Beijing SuperMap. It trades about 0.12 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about -0.01 per unit of risk. If you would invest 16,850 in BeiGene on September 2, 2024 and sell it today you would earn a total of 1,288 from holding BeiGene or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Beijing SuperMap Software
Performance |
| Timeline |
| BeiGene |
| Beijing SuperMap Software |
BeiGene and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Beijing SuperMap
The main advantage of trading using opposite BeiGene and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| BeiGene vs. Hainan Airlines Co | BeiGene vs. Southchip Semiconductor Technology | BeiGene vs. Tieling Newcity Investment | BeiGene vs. GigaDevice SemiconductorBeiji |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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