Correlation Between BeiGene and Hualan Group
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By analyzing existing cross correlation between BeiGene and Hualan Group Co, you can compare the effects of market volatilities on BeiGene and Hualan Group 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 Hualan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hualan Group.
Diversification Opportunities for BeiGene and Hualan Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Hualan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hualan Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hualan Group 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 Hualan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hualan Group has no effect on the direction of BeiGene i.e., BeiGene and Hualan Group go up and down completely randomly.
Pair Corralation between BeiGene and Hualan Group
Assuming the 90 days trading horizon BeiGene is expected to generate 2.26 times less return on investment than Hualan Group. But when comparing it to its historical volatility, BeiGene is 1.87 times less risky than Hualan Group. It trades about 0.11 of its potential returns per unit of risk. Hualan Group Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 714.00 in Hualan Group Co on September 3, 2024 and sell it today you would earn a total of 775.00 from holding Hualan Group Co or generate 108.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Hualan Group Co
Performance |
| Timeline |
| BeiGene |
| Hualan Group |
BeiGene and Hualan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Hualan Group
The main advantage of trading using opposite BeiGene and Hualan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hualan Group 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 Hualan Group will offset losses from the drop in Hualan Group's long position.| BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Fujian Anjoy Foods | BeiGene vs. Shantou Wanshun Package | BeiGene vs. Guocheng Mining Co |
| Hualan Group vs. Hainan Mining Co | Hualan Group vs. Uroica Mining Safety | Hualan Group vs. Fujian Oriental Silver | Hualan Group vs. Guangdong Silvere Sci |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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