Correlation Between Beijing Bashi and Hengdian Entertainment
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By analyzing existing cross correlation between Beijing Bashi Media and Hengdian Entertainment Co, you can compare the effects of market volatilities on Beijing Bashi and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Hengdian Entertainment.
Diversification Opportunities for Beijing Bashi and Hengdian Entertainment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Hengdian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Beijing Bashi and Hengdian Entertainment
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.0 times less return on investment than Hengdian Entertainment. But when comparing it to its historical volatility, Beijing Bashi Media is 1.05 times less risky than Hengdian Entertainment. It trades about 0.19 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Hengdian Entertainment Co on September 19, 2024 and sell it today you would earn a total of 225.00 from holding Hengdian Entertainment Co or generate 17.07% 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. Hengdian Entertainment Co
Performance |
Timeline |
Beijing Bashi Media |
Hengdian Entertainment |
Beijing Bashi and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Bashi and Hengdian Entertainment
The main advantage of trading using opposite Beijing Bashi and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.Beijing Bashi vs. Ming Yang Smart | Beijing Bashi vs. 159681 | Beijing Bashi vs. 159005 | Beijing Bashi vs. Loctek Ergonomic Technology |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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