Correlation Between Astar and Beijing Seeyon
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By analyzing existing cross correlation between Astar and Beijing Seeyon Internet, you can compare the effects of market volatilities on Astar and Beijing Seeyon 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 Astar with a short position of Beijing Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Beijing Seeyon.
Diversification Opportunities for Astar and Beijing Seeyon
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astar and Beijing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet and Astar 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 Astar are associated (or correlated) with Beijing Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of Astar i.e., Astar and Beijing Seeyon go up and down completely randomly.
Pair Corralation between Astar and Beijing Seeyon
Assuming the 90 days trading horizon Astar is expected to generate 1.32 times more return on investment than Beijing Seeyon. However, Astar is 1.32 times more volatile than Beijing Seeyon Internet. It trades about -0.05 of its potential returns per unit of risk. Beijing Seeyon Internet is currently generating about -0.22 per unit of risk. If you would invest 6.86 in Astar on October 17, 2024 and sell it today you would lose (0.60) from holding Astar or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astar vs. Beijing Seeyon Internet
Performance |
| Timeline |
| Astar |
| Beijing Seeyon Internet |
Astar and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Beijing Seeyon
The main advantage of trading using opposite Astar and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Beijing Seeyon 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 Seeyon will offset losses from the drop in Beijing Seeyon's long position.The idea behind Astar and Beijing Seeyon Internet pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beijing Seeyon vs. China Life Insurance | Beijing Seeyon vs. Cinda Securities Co | Beijing Seeyon vs. Piotech Inc A | Beijing Seeyon vs. Dongxing Sec Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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