Correlation Between Beijing Jiaman and Shantui Construction
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By analyzing existing cross correlation between Beijing Jiaman Dress and Shantui Construction Machinery, you can compare the effects of market volatilities on Beijing Jiaman and Shantui Construction 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 Jiaman with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Shantui Construction.
Diversification Opportunities for Beijing Jiaman and Shantui Construction
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Shantui is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Beijing Jiaman 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 Jiaman Dress are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Shantui Construction go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Shantui Construction
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Shantui Construction. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.21 times less risky than Shantui Construction. The stock trades about 0.0 of its potential returns per unit of risk. The Shantui Construction Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 417.00 in Shantui Construction Machinery on October 11, 2024 and sell it today you would earn a total of 590.00 from holding Shantui Construction Machinery or generate 141.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Jiaman Dress vs. Shantui Construction Machinery
Performance |
Timeline |
Beijing Jiaman Dress |
Shantui Construction |
Beijing Jiaman and Shantui Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Jiaman and Shantui Construction
The main advantage of trading using opposite Beijing Jiaman and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.Beijing Jiaman vs. Vanfund Urban Investment | Beijing Jiaman vs. Zhongrun Resources Investment | Beijing Jiaman vs. Henan Shuanghui Investment | Beijing Jiaman vs. Postal Savings Bank |
Shantui Construction vs. Beijing Jiaman Dress | Shantui Construction vs. Jinhui Mining Co | Shantui Construction vs. Nanjing Putian Telecommunications | Shantui Construction vs. Xiangyang Automobile Bearing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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