Correlation Between Beijing Seeyon and Bank of Communications
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By analyzing existing cross correlation between Beijing Seeyon Internet and Bank of Communications, you can compare the effects of market volatilities on Beijing Seeyon and Bank of Communications 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 Beijing Seeyon with a short position of Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Seeyon and Bank of Communications.
Diversification Opportunities for Beijing Seeyon and Bank of Communications
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Bank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Seeyon Internet and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications and Beijing Seeyon 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 Beijing Seeyon Internet are associated (or correlated) with Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Beijing Seeyon i.e., Beijing Seeyon and Bank of Communications go up and down completely randomly.
Pair Corralation between Beijing Seeyon and Bank of Communications
Assuming the 90 days trading horizon Beijing Seeyon Internet is expected to generate 2.92 times more return on investment than Bank of Communications. However, Beijing Seeyon is 2.92 times more volatile than Bank of Communications. It trades about 0.48 of its potential returns per unit of risk. Bank of Communications is currently generating about -0.08 per unit of risk. If you would invest 1,700 in Beijing Seeyon Internet on November 5, 2024 and sell it today you would earn a total of 664.00 from holding Beijing Seeyon Internet or generate 39.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Seeyon Internet vs. Bank of Communications
Performance |
| Timeline |
| Beijing Seeyon Internet |
| Bank of Communications |
Beijing Seeyon and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Seeyon and Bank of Communications
The main advantage of trading using opposite Beijing Seeyon and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Seeyon position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Beijing Seeyon vs. Shengda Mining Co | Beijing Seeyon vs. Fujian Oriental Silver | Beijing Seeyon vs. Guangdong Liantai Environmental | Beijing Seeyon vs. Eit Environmental Development |
| Bank of Communications vs. HUAQIN TECHNOLOGY LTD | Bank of Communications vs. Jinyu Bio Technology Co | Bank of Communications vs. ROPEOK Technology Group | Bank of Communications vs. HanS Laser Tech |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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