Correlation Between China Aluminum and BeiGene
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By analyzing existing cross correlation between China Aluminum International and BeiGene, you can compare the effects of market volatilities on China Aluminum and BeiGene 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 China Aluminum with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and BeiGene.
Diversification Opportunities for China Aluminum and BeiGene
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and BeiGene is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and China Aluminum 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 China Aluminum International are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of China Aluminum i.e., China Aluminum and BeiGene go up and down completely randomly.
Pair Corralation between China Aluminum and BeiGene
Assuming the 90 days trading horizon China Aluminum International is not expected to generate positive returns. However, China Aluminum International is 1.08 times less risky than BeiGene. It waists most of its returns potential to compensate for thr risk taken. BeiGene is generating about 0.01 per unit of risk. If you would invest 15,500 in BeiGene on October 9, 2024 and sell it today you would earn a total of 180.00 from holding BeiGene or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Aluminum International vs. BeiGene
Performance |
Timeline |
China Aluminum Inter |
BeiGene |
China Aluminum and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Aluminum and BeiGene
The main advantage of trading using opposite China Aluminum and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.China Aluminum vs. East Money Information | China Aluminum vs. CITIC Guoan Information | China Aluminum vs. Sublime China Information | China Aluminum vs. Zhengzhou Coal Mining |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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