Correlation Between BeiGene and Changchun Faway
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By analyzing existing cross correlation between BeiGene and Changchun Faway Automobile, you can compare the effects of market volatilities on BeiGene and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Changchun Faway.
Diversification Opportunities for BeiGene and Changchun Faway
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Changchun is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of BeiGene i.e., BeiGene and Changchun Faway go up and down completely randomly.
Pair Corralation between BeiGene and Changchun Faway
Assuming the 90 days trading horizon BeiGene is expected to under-perform the Changchun Faway. In addition to that, BeiGene is 1.24 times more volatile than Changchun Faway Automobile. It trades about -0.07 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.12 per unit of volatility. If you would invest 865.00 in Changchun Faway Automobile on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Changchun Faway Automobile or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Changchun Faway Automobile
Performance |
| Timeline |
| BeiGene |
| Changchun Faway Auto |
BeiGene and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Changchun Faway
The main advantage of trading using opposite BeiGene and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway 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 Stocks Directory module to find actively traded stocks across global markets.
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