Correlation Between BeiGene and Jiangxi Lianchuang
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By analyzing existing cross correlation between BeiGene and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on BeiGene and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Jiangxi Lianchuang.
Diversification Opportunities for BeiGene and Jiangxi Lianchuang
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BeiGene and Jiangxi is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of BeiGene i.e., BeiGene and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between BeiGene and Jiangxi Lianchuang
Assuming the 90 days trading horizon BeiGene is expected to generate 0.92 times more return on investment than Jiangxi Lianchuang. However, BeiGene is 1.08 times less risky than Jiangxi Lianchuang. It trades about 0.47 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.2 per unit of risk. If you would invest 15,680 in BeiGene on November 7, 2024 and sell it today you would earn a total of 3,389 from holding BeiGene or generate 21.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| BeiGene |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Jiangxi Lianchuang Opto |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BeiGene and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Jiangxi Lianchuang
The main advantage of trading using opposite BeiGene and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.The idea behind BeiGene and Jiangxi Lianchuang Opto electronic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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