Correlation Between Capital Income and Beijing Wantai
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By analyzing existing cross correlation between Capital Income Builder and Beijing Wantai Biological, you can compare the effects of market volatilities on Capital Income and Beijing Wantai 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 Capital Income with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and Beijing Wantai.
Diversification Opportunities for Capital Income and Beijing Wantai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and Capital Income 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 Capital Income Builder are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Capital Income i.e., Capital Income and Beijing Wantai go up and down completely randomly.
Pair Corralation between Capital Income and Beijing Wantai
Assuming the 90 days horizon Capital Income Builder is expected to generate 0.29 times more return on investment than Beijing Wantai. However, Capital Income Builder is 3.47 times less risky than Beijing Wantai. It trades about 0.24 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.17 per unit of risk. If you would invest 6,906 in Capital Income Builder on October 24, 2024 and sell it today you would earn a total of 171.00 from holding Capital Income Builder or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Capital Income Builder vs. Beijing Wantai Biological
Performance |
| Timeline |
| Capital Income Builder |
| Beijing Wantai Biological |
Capital Income and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and Beijing Wantai
The main advantage of trading using opposite Capital Income and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| Capital Income vs. Old Westbury Municipal | Capital Income vs. Lord Abbett Intermediate | Capital Income vs. Blackrock Pa Muni | Capital Income vs. Inverse Government Long |
| Beijing Wantai vs. Shenyang Chemical Industry | Beijing Wantai vs. Tongyu Communication | Beijing Wantai vs. Anhui Jianghuai Automobile | Beijing Wantai vs. Haima Automobile 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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