Correlation Between Beijing Bashi and Dawning Information
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By analyzing existing cross correlation between Beijing Bashi Media and Dawning Information Industry, you can compare the effects of market volatilities on Beijing Bashi and Dawning Information 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 Bashi with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Dawning Information.
Diversification Opportunities for Beijing Bashi and Dawning Information
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Dawning is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Beijing Bashi 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 Bashi Media are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Dawning Information go up and down completely randomly.
Pair Corralation between Beijing Bashi and Dawning Information
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.84 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Beijing Bashi Media is 1.27 times less risky than Dawning Information. It trades about 0.22 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,571 in Dawning Information Industry on September 5, 2024 and sell it today you would earn a total of 4,214 from holding Dawning Information Industry or generate 118.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Bashi Media vs. Dawning Information Industry
Performance |
Timeline |
Beijing Bashi Media |
Dawning Information |
Beijing Bashi and Dawning Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Bashi and Dawning Information
The main advantage of trading using opposite Beijing Bashi and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.Beijing Bashi vs. BYD Co Ltd | Beijing Bashi vs. China Mobile Limited | Beijing Bashi vs. Agricultural Bank of | Beijing Bashi vs. Industrial and Commercial |
Dawning Information vs. Beijing Bashi Media | Dawning Information vs. Dalian Zeus Entertainment | Dawning Information vs. Shuhua Sports Co | Dawning Information vs. Shandong Homey Aquatic |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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