Correlation Between BeiGene and Jangho Group

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Can any of the company-specific risk be diversified away by investing in both BeiGene and Jangho Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BeiGene and Jangho Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and Jangho Group Co, you can compare the effects of market volatilities on BeiGene and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Jangho Group.

Diversification Opportunities for BeiGene and Jangho Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BeiGene and Jangho is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho Group 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of BeiGene i.e., BeiGene and Jangho Group go up and down completely randomly.

Pair Corralation between BeiGene and Jangho Group

Assuming the 90 days trading horizon BeiGene is expected to generate 1.82 times more return on investment than Jangho Group. However, BeiGene is 1.82 times more volatile than Jangho Group Co. It trades about 0.41 of its potential returns per unit of risk. Jangho Group Co is currently generating about 0.01 per unit of risk. If you would invest  16,044  in BeiGene on November 30, 2024 and sell it today you would earn a total of  7,797  from holding BeiGene or generate 48.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BeiGene  vs.  Jangho Group Co

 Performance 
       Timeline  
BeiGene 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BeiGene are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BeiGene sustained solid returns over the last few months and may actually be approaching a breakup point.
Jangho Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jangho Group Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jangho Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BeiGene and Jangho Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BeiGene and Jangho Group

The main advantage of trading using opposite BeiGene and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.
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The idea behind BeiGene and Jangho Group Co 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.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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