Correlation Between Beijing Mainstreets and Vanfund Urban
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Vanfund Urban Investment, you can compare the effects of market volatilities on Beijing Mainstreets and Vanfund Urban 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 Mainstreets with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Vanfund Urban.
Diversification Opportunities for Beijing Mainstreets and Vanfund Urban
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Vanfund is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Beijing Mainstreets 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 Mainstreets Investment are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Vanfund Urban go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Vanfund Urban
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Vanfund Urban. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Mainstreets Investment is 1.04 times less risky than Vanfund Urban. The stock trades about -0.21 of its potential returns per unit of risk. The Vanfund Urban Investment is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Vanfund Urban Investment on September 26, 2024 and sell it today you would lose (52.00) from holding Vanfund Urban Investment or give up 9.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Mainstreets Investment vs. Vanfund Urban Investment
Performance |
Timeline |
Beijing Mainstreets |
Vanfund Urban Investment |
Beijing Mainstreets and Vanfund Urban Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Mainstreets and Vanfund Urban
The main advantage of trading using opposite Beijing Mainstreets and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets vs. Ping An Insurance |
Vanfund Urban vs. Fiberhome Telecommunication Technologies | Vanfund Urban vs. Anhui Jianghuai Automobile | Vanfund Urban vs. Tianshan Aluminum Group | Vanfund Urban vs. Anhui Transport Consulting |
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 CEOs Directory module to screen CEOs from public companies around the world.
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