Correlation Between Eastern Communications and Beijing Bewinner
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By analyzing existing cross correlation between Eastern Communications Co and Beijing Bewinner Communications, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Beijing Bewinner.
Diversification Opportunities for Eastern Communications and Beijing Bewinner
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Beijing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Eastern Communications and Beijing Bewinner
Assuming the 90 days trading horizon Eastern Communications is expected to generate 1.24 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Eastern Communications Co is 1.19 times less risky than Beijing Bewinner. It trades about 0.17 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Beijing Bewinner Communications on September 2, 2024 and sell it today you would earn a total of 175.00 from holding Beijing Bewinner Communications or generate 38.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Eastern Communications |
| Beijing Bewinner Com |
Eastern Communications and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Beijing Bewinner
The main advantage of trading using opposite Eastern Communications and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. Agricultural Bank of | Eastern Communications vs. China Mobile Limited |
| Beijing Bewinner vs. New China Life | Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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