Correlation Between Beijing Quanshi and Tianjin Pengling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Quanshi World and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Beijing Quanshi and Tianjin Pengling 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 Quanshi with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Quanshi and Tianjin Pengling.
Diversification Opportunities for Beijing Quanshi and Tianjin Pengling
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Tianjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Quanshi World and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and Beijing Quanshi 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 Quanshi World are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Beijing Quanshi i.e., Beijing Quanshi and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Beijing Quanshi and Tianjin Pengling
Assuming the 90 days trading horizon Beijing Quanshi World is expected to generate 1.46 times more return on investment than Tianjin Pengling. However, Beijing Quanshi is 1.46 times more volatile than Tianjin Pengling Rubber. It trades about 0.21 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.16 per unit of risk. If you would invest 1,345 in Beijing Quanshi World on September 11, 2024 and sell it today you would earn a total of 1,040 from holding Beijing Quanshi World or generate 77.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Quanshi World vs. Tianjin Pengling Rubber
Performance |
Timeline |
Beijing Quanshi World |
Tianjin Pengling Rubber |
Beijing Quanshi and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Quanshi and Tianjin Pengling
The main advantage of trading using opposite Beijing Quanshi and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Quanshi position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.Beijing Quanshi vs. Shanghai Rongtai Health | Beijing Quanshi vs. Guangdong Marubi Biotechnology | Beijing Quanshi vs. Meinian Onehealth Healthcare | Beijing Quanshi vs. Mingchen Health Co |
Tianjin Pengling vs. Focus Media Information | Tianjin Pengling vs. China World Trade | Tianjin Pengling vs. Guangzhou Ruoyuchen Information | Tianjin Pengling vs. Zhangjiagang Freetrade Science |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |