Correlation Between One Gas and Beijing Gas
Can any of the company-specific risk be diversified away by investing in both One Gas and Beijing 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 One Gas and Beijing Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Gas and Beijing Gas Blue, you can compare the effects of market volatilities on One Gas and Beijing 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 One Gas with a short position of Beijing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Gas and Beijing Gas.
Diversification Opportunities for One Gas and Beijing Gas
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between One and Beijing is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and Beijing Gas Blue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Gas Blue and One 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 One Gas are associated (or correlated) with Beijing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Gas Blue has no effect on the direction of One Gas i.e., One Gas and Beijing Gas go up and down completely randomly.
Pair Corralation between One Gas and Beijing Gas
Considering the 90-day investment horizon One Gas is expected to generate 0.12 times more return on investment than Beijing Gas. However, One Gas is 8.04 times less risky than Beijing Gas. It trades about -0.02 of its potential returns per unit of risk. Beijing Gas Blue is currently generating about -0.13 per unit of risk. 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 |
One Gas vs. Beijing Gas Blue
Performance |
| Timeline |
| One Gas |
| Beijing Gas Blue |
One Gas and Beijing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Gas and Beijing Gas
The main advantage of trading using opposite One Gas and Beijing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Gas position performs unexpectedly, Beijing 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 Beijing Gas will offset losses from the drop in Beijing Gas' long position.| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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