Correlation Between Beijing Venustech and BeiGene

Can any of the company-specific risk be diversified away by investing in both Beijing Venustech and BeiGene 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 Venustech and BeiGene into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beijing Venustech and BeiGene, you can compare the effects of market volatilities on Beijing Venustech and BeiGene 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 Venustech with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Venustech and BeiGene.

Diversification Opportunities for Beijing Venustech and BeiGene

0.0

Correlation Coefficient

Beijing Venustech  BeiGene

Pay attention - limited upside

The 3 months correlation between Beijing and BeiGene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Venustech and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Beijing Venustech 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 Venustech are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Beijing Venustech i.e., Beijing Venustech and BeiGene go up and down completely randomly.

Pair Corralation between Beijing Venustech and BeiGene

If you would invest  1,582  in Beijing Venustech on December 31, 2024 and sell it today you would earn a total of  88.00  from holding Beijing Venustech or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Beijing Venustech  vs.  BeiGene

Beijing Venustech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Beijing Venustech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Beijing Venustech may actually be approaching a critical reversion point that can send shares even higher in May 2025.

BeiGene

Risk-Adjusted Performance

Solid

Over the last 90 days BeiGene has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BeiGene is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Beijing Venustech and BeiGene

The main advantage of trading using opposite Beijing Venustech and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Venustech position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.

The idea behind Beijing Venustech and BeiGene pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.