Correlation Between Dazhong Transportation and Beijing Mainstreets
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By analyzing existing cross correlation between Dazhong Transportation Group and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Dazhong Transportation and Beijing Mainstreets 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 Dazhong Transportation with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Beijing Mainstreets.
Diversification Opportunities for Dazhong Transportation and Beijing Mainstreets
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dazhong and Beijing is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Dazhong Transportation 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 Dazhong Transportation Group are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Beijing Mainstreets
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 43.3 times less return on investment than Beijing Mainstreets. But when comparing it to its historical volatility, Dazhong Transportation Group is 1.51 times less risky than Beijing Mainstreets. It trades about 0.01 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Beijing Mainstreets Investment on October 27, 2024 and sell it today you would earn a total of 38.00 from holding Beijing Mainstreets Investment or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Dazhong Transportation |
| Beijing Mainstreets |
Dazhong Transportation and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Beijing Mainstreets
The main advantage of trading using opposite Dazhong Transportation and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Beijing Mainstreets 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 Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Dazhong Transportation vs. China Mobile Limited | Dazhong Transportation vs. Agricultural Bank of | Dazhong Transportation vs. Industrial and Commercial | Dazhong Transportation vs. China Construction Bank |
| Beijing Mainstreets vs. Agricultural Bank of | Beijing Mainstreets vs. Industrial and Commercial | Beijing Mainstreets vs. Bank of China | Beijing Mainstreets vs. China Construction Bank |
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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