Correlation Between BeiGene and Hunan Fangsheng
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By analyzing existing cross correlation between BeiGene and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on BeiGene and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hunan Fangsheng.
Diversification Opportunities for BeiGene and Hunan Fangsheng
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BeiGene and Hunan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of BeiGene i.e., BeiGene and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between BeiGene and Hunan Fangsheng
Assuming the 90 days trading horizon BeiGene is expected to generate 1.0 times more return on investment than Hunan Fangsheng. However, BeiGene is 1.0 times more volatile than Hunan Fangsheng Pharm. It trades about 0.24 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.25 per unit of risk. If you would invest 16,157 in BeiGene on October 20, 2024 and sell it today you would earn a total of 2,061 from holding BeiGene or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| BeiGene |
| Hunan Fangsheng Pharm |
BeiGene and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Hunan Fangsheng
The main advantage of trading using opposite BeiGene and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| BeiGene vs. Guangzhou Seagull Kitchen | BeiGene vs. Lutian Machinery Co | BeiGene vs. Jinlong Machinery Electronic | BeiGene vs. Shenzhen Noposion Agrochemicals |
| Hunan Fangsheng vs. Shenzhen Centralcon Investment | Hunan Fangsheng vs. Financial Street Holdings | Hunan Fangsheng vs. Industrial Bank Co | Hunan Fangsheng vs. Hunan Investment Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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