Correlation Between BeiGene and Chongqing Sulian
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By analyzing existing cross correlation between BeiGene and Chongqing Sulian Plastic, you can compare the effects of market volatilities on BeiGene and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Chongqing Sulian.
Diversification Opportunities for BeiGene and Chongqing Sulian
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Chongqing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of BeiGene i.e., BeiGene and Chongqing Sulian go up and down completely randomly.
Pair Corralation between BeiGene and Chongqing Sulian
Assuming the 90 days trading horizon BeiGene is expected to generate 0.76 times more return on investment than Chongqing Sulian. However, BeiGene is 1.32 times less risky than Chongqing Sulian. It trades about 0.03 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.02 per unit of risk. If you would invest 14,581 in BeiGene on September 14, 2024 and sell it today you would earn a total of 1,620 from holding BeiGene or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| BeiGene |
| Chongqing Sulian Plastic |
BeiGene and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Chongqing Sulian
The main advantage of trading using opposite BeiGene and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| BeiGene vs. Great Sun Foods Co | BeiGene vs. Nanjing Putian Telecommunications | BeiGene vs. Shandong Huifa Foodstuff | BeiGene vs. Eastroc Beverage Group |
| Chongqing Sulian vs. BeiGene | Chongqing Sulian vs. Kweichow Moutai Co | Chongqing Sulian vs. Beijing Roborock Technology | Chongqing Sulian 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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