Correlation Between Beijing Gas and EverGen Infrastructure
Can any of the company-specific risk be diversified away by investing in both Beijing Gas and EverGen Infrastructure 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 Beijing Gas and EverGen Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Gas Blue and EverGen Infrastructure Corp, you can compare the effects of market volatilities on Beijing Gas and EverGen Infrastructure 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 Gas with a short position of EverGen Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Gas and EverGen Infrastructure.
Diversification Opportunities for Beijing Gas and EverGen Infrastructure
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and EverGen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Gas Blue and EverGen Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverGen Infrastructure and Beijing Gas 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 Gas Blue are associated (or correlated) with EverGen Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverGen Infrastructure has no effect on the direction of Beijing Gas i.e., Beijing Gas and EverGen Infrastructure go up and down completely randomly.
Pair Corralation between Beijing Gas and EverGen Infrastructure
Assuming the 90 days horizon Beijing Gas Blue is expected to under-perform the EverGen Infrastructure. In addition to that, Beijing Gas is 2.42 times more volatile than EverGen Infrastructure Corp. It trades about -0.13 of its total potential returns per unit of risk. EverGen Infrastructure Corp is currently generating about -0.15 per unit of volatility. If you would invest 129.00 in EverGen Infrastructure Corp on November 8, 2024 and sell it today you would lose (51.00) from holding EverGen Infrastructure Corp or give up 39.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Beijing Gas Blue vs. EverGen Infrastructure Corp
Performance |
| Timeline |
| Beijing Gas Blue |
| EverGen Infrastructure |
Beijing Gas and EverGen Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Gas and EverGen Infrastructure
The main advantage of trading using opposite Beijing Gas and EverGen Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Gas position performs unexpectedly, EverGen Infrastructure 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 EverGen Infrastructure will offset losses from the drop in EverGen Infrastructure's long position.| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
| EverGen Infrastructure vs. Beijing Gas Blue | EverGen Infrastructure vs. OPAL Fuels | EverGen Infrastructure vs. ENN Energy Holdings | EverGen Infrastructure vs. APA Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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