Correlation Between Fujian Wanchen and Beijing Mainstreets
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Fujian Wanchen and Beijing Mainstreets 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 Fujian Wanchen with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Beijing Mainstreets.
Diversification Opportunities for Fujian Wanchen and Beijing Mainstreets
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Beijing is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Fujian Wanchen 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 Fujian Wanchen Biotechnology are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Beijing Mainstreets
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 0.91 times more return on investment than Beijing Mainstreets. However, Fujian Wanchen Biotechnology is 1.1 times less risky than Beijing Mainstreets. It trades about 0.1 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.05 per unit of risk. If you would invest 3,225 in Fujian Wanchen Biotechnology on November 20, 2024 and sell it today you would earn a total of 6,445 from holding Fujian Wanchen Biotechnology or generate 199.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Beijing Mainstreets Investment
Performance |
Timeline |
Fujian Wanchen Biote |
Beijing Mainstreets |
Fujian Wanchen and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Wanchen and Beijing Mainstreets
The main advantage of trading using opposite Fujian Wanchen and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Beijing Mainstreets 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 Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.Fujian Wanchen vs. Epoxy Base Electronic | ||
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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