Correlation Between Shanghai CEO and Beijing Bewinner
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By analyzing existing cross correlation between Shanghai CEO Environmental and Beijing Bewinner Communications, you can compare the effects of market volatilities on Shanghai CEO and Beijing Bewinner 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 Shanghai CEO with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Beijing Bewinner.
Diversification Opportunities for Shanghai CEO and Beijing Bewinner
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Beijing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com and Shanghai CEO 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 Shanghai CEO Environmental are associated (or correlated) with Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Shanghai CEO and Beijing Bewinner
Assuming the 90 days trading horizon Shanghai CEO is expected to generate 1.16 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Shanghai CEO Environmental is 1.08 times less risky than Beijing Bewinner. It trades about 0.16 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Beijing Bewinner Communications on August 28, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Bewinner Communications or generate 35.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Shanghai CEO Environ |
| Beijing Bewinner Com |
Shanghai CEO and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Beijing Bewinner
The main advantage of trading using opposite Shanghai CEO and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Shanghai CEO vs. Kweichow Moutai Co | Shanghai CEO vs. Shenzhen Mindray Bio Medical | Shanghai CEO vs. G bits Network Technology | Shanghai CEO vs. Shenzhen Transsion Holdings |
| Beijing Bewinner vs. Der International Home | Beijing Bewinner vs. Shanghai CEO Environmental | Beijing Bewinner vs. Xiamen Goldenhome Co | Beijing Bewinner vs. Huaxia Fund Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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