Correlation Between BEIJJINGNENG CLERGHYC1 and Superior Plus
Can any of the company-specific risk be diversified away by investing in both BEIJJINGNENG CLERGHYC1 and Superior Plus at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BEIJJINGNENG CLERGHYC1 and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEIJJINGNENG CLERGHYC1 and Superior Plus Corp, you can compare the effects of market volatilities on BEIJJINGNENG CLERGHYC1 and Superior Plus 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 BEIJJINGNENG CLERGHYC1 with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEIJJINGNENG CLERGHYC1 and Superior Plus.
Diversification Opportunities for BEIJJINGNENG CLERGHYC1 and Superior Plus
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEIJJINGNENG and Superior is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding BEIJJINGNENG CLERGHYC1 and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and BEIJJINGNENG CLERGHYC1 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 BEIJJINGNENG CLERGHYC1 are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of BEIJJINGNENG CLERGHYC1 i.e., BEIJJINGNENG CLERGHYC1 and Superior Plus go up and down completely randomly.
Pair Corralation between BEIJJINGNENG CLERGHYC1 and Superior Plus
Assuming the 90 days horizon BEIJJINGNENG CLERGHYC1 is expected to generate 1.79 times more return on investment than Superior Plus. However, BEIJJINGNENG CLERGHYC1 is 1.79 times more volatile than Superior Plus Corp. It trades about 0.03 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.04 per unit of risk. If you would invest 19.00 in BEIJJINGNENG CLERGHYC1 on August 27, 2024 and sell it today you would earn a total of 4.00 from holding BEIJJINGNENG CLERGHYC1 or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEIJJINGNENG CLERGHYC1 vs. Superior Plus Corp
Performance |
| Timeline |
| BEIJJINGNENG CLERGHYC1 |
| Superior Plus Corp |
BEIJJINGNENG CLERGHYC1 and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEIJJINGNENG CLERGHYC1 and Superior Plus
The main advantage of trading using opposite BEIJJINGNENG CLERGHYC1 and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEIJJINGNENG CLERGHYC1 position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| BEIJJINGNENG CLERGHYC1 vs. VERBUND AG ADR | BEIJJINGNENG CLERGHYC1 vs. Superior Plus Corp | BEIJJINGNENG CLERGHYC1 vs. Origin Agritech | BEIJJINGNENG CLERGHYC1 vs. Identiv |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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