Correlation Between Zhejiang Construction and BeiGene
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By analyzing existing cross correlation between Zhejiang Construction Investment and BeiGene, you can compare the effects of market volatilities on Zhejiang Construction 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 Zhejiang Construction with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and BeiGene.
Diversification Opportunities for Zhejiang Construction and BeiGene
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and BeiGene is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Zhejiang Construction 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 Zhejiang Construction Investment 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 Zhejiang Construction i.e., Zhejiang Construction and BeiGene go up and down completely randomly.
Pair Corralation between Zhejiang Construction and BeiGene
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the BeiGene. In addition to that, Zhejiang Construction is 1.59 times more volatile than BeiGene. It trades about -0.35 of its total potential returns per unit of risk. BeiGene is currently generating about -0.04 per unit of volatility. If you would invest 16,490 in BeiGene on September 25, 2024 and sell it today you would lose (369.00) from holding BeiGene or give up 2.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Zhejiang Construction Investme vs. BeiGene
Performance |
Timeline |
Zhejiang Construction |
BeiGene |
Zhejiang Construction and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Construction and BeiGene
The main advantage of trading using opposite Zhejiang Construction and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction 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.Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. China Construction Bank | Zhejiang Construction vs. Bank of China |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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