Correlation Between Beijing Gas and One Gas
Can any of the company-specific risk be diversified away by investing in both Beijing Gas and One Gas 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 One Gas 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 One Gas, you can compare the effects of market volatilities on Beijing Gas and One Gas 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 One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Gas and One Gas.
Diversification Opportunities for Beijing Gas and One Gas
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and One is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Gas Blue and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of Beijing Gas i.e., Beijing Gas and One Gas go up and down completely randomly.
Pair Corralation between Beijing Gas and One Gas
Assuming the 90 days horizon Beijing Gas Blue is expected to under-perform the One Gas. In addition to that, Beijing Gas is 8.04 times more volatile than One Gas. It trades about -0.13 of its total potential returns per unit of risk. One Gas is currently generating about -0.02 per unit of volatility. If you would invest 7,271 in One Gas on November 8, 2024 and sell it today you would lose (158.00) from holding One Gas or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Beijing Gas Blue vs. One Gas
Performance |
| Timeline |
| Beijing Gas Blue |
| One Gas |
Beijing Gas and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Gas and One Gas
The main advantage of trading using opposite Beijing Gas and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Gas position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' long position.| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |