Correlation Between Beken Corp and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beken Corp and China Merchants Bank, you can compare the effects of market volatilities on Beken Corp and China Merchants 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 Beken Corp with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beken Corp and China Merchants.
Diversification Opportunities for Beken Corp and China Merchants
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beken and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beken Corp and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank and Beken Corp 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 Beken Corp are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Beken Corp i.e., Beken Corp and China Merchants go up and down completely randomly.
Pair Corralation between Beken Corp and China Merchants
Assuming the 90 days trading horizon Beken Corp is expected to generate 2.71 times more return on investment than China Merchants. However, Beken Corp is 2.71 times more volatile than China Merchants Bank. It trades about 0.13 of its potential returns per unit of risk. China Merchants Bank is currently generating about 0.26 per unit of risk. If you would invest 2,809 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 286.00 from holding Beken Corp or generate 10.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beken Corp vs. China Merchants Bank
Performance |
Timeline |
Beken Corp |
China Merchants Bank |
Beken Corp and China Merchants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beken Corp and China Merchants
The main advantage of trading using opposite Beken Corp and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beken Corp position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
China Merchants vs. Kweichow Moutai Co | China Merchants vs. Contemporary Amperex Technology | China Merchants vs. G bits Network Technology | China Merchants vs. BYD Co Ltd |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |