Correlation Between BeiGene and AECC Aviation
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By analyzing existing cross correlation between BeiGene and AECC Aviation Power, you can compare the effects of market volatilities on BeiGene and AECC Aviation 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 AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and AECC Aviation.
Diversification Opportunities for BeiGene and AECC Aviation
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BeiGene and AECC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and AECC Aviation Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECC Aviation Power 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 AECC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECC Aviation Power has no effect on the direction of BeiGene i.e., BeiGene and AECC Aviation go up and down completely randomly.
Pair Corralation between BeiGene and AECC Aviation
Assuming the 90 days trading horizon BeiGene is expected to generate 1.62 times more return on investment than AECC Aviation. However, BeiGene is 1.62 times more volatile than AECC Aviation Power. It trades about -0.16 of its potential returns per unit of risk. AECC Aviation Power is currently generating about -0.33 per unit of risk. If you would invest 18,692 in BeiGene on September 12, 2024 and sell it today you would lose (2,064) from holding BeiGene or give up 11.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
BeiGene vs. AECC Aviation Power
Performance |
| Timeline |
| BeiGene |
| AECC Aviation Power |
BeiGene and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and AECC Aviation
The main advantage of trading using opposite BeiGene and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, AECC Aviation 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 AECC Aviation will offset losses from the drop in AECC Aviation's long position.| BeiGene vs. Touchstone International Medical | BeiGene vs. Guizhou BroadcastingTV Info | BeiGene vs. Zhengping RoadBridge Constr | BeiGene vs. Hubeiyichang Transportation Group |
| AECC Aviation vs. Tianjin Capital Environmental | AECC Aviation vs. Guangdong Liantai Environmental | AECC Aviation vs. Hang Xiao Steel | AECC Aviation vs. Beijing Bashi Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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