Correlation Between BeiGene and Long Yuan
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By analyzing existing cross correlation between BeiGene and Long Yuan Construction, you can compare the effects of market volatilities on BeiGene and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Long Yuan.
Diversification Opportunities for BeiGene and Long Yuan
Average diversification
The 3 months correlation between BeiGene and Long is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of BeiGene i.e., BeiGene and Long Yuan go up and down completely randomly.
Pair Corralation between BeiGene and Long Yuan
Assuming the 90 days trading horizon BeiGene is expected to generate 0.99 times more return on investment than Long Yuan. However, BeiGene is 1.01 times less risky than Long Yuan. It trades about 0.32 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.13 per unit of risk. If you would invest 16,100 in BeiGene on October 23, 2024 and sell it today you would earn a total of 2,680 from holding BeiGene or generate 16.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BeiGene vs. Long Yuan Construction
Performance |
Timeline |
BeiGene |
Long Yuan Construction |
BeiGene and Long Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BeiGene and Long Yuan
The main advantage of trading using opposite BeiGene and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.BeiGene vs. Thinkingdom Media Group | BeiGene vs. Jiangnan Mould Plastic | BeiGene vs. Shanghai Xinhua Media | BeiGene vs. Omnijoi Media Corp |
Long Yuan vs. Chengdu Kanghua Biological | Long Yuan vs. Beijing Wantai Biological | Long Yuan vs. Suzhou Novoprotein Scientific | Long Yuan vs. Aluminum Corp of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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