Correlation Between Beijing Wantai and Zhongshan Public
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By analyzing existing cross correlation between Beijing Wantai Biological and Zhongshan Public Utilities, you can compare the effects of market volatilities on Beijing Wantai and Zhongshan Public 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 Wantai with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Zhongshan Public.
Diversification Opportunities for Beijing Wantai and Zhongshan Public
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Zhongshan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Beijing Wantai 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 Wantai Biological are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Zhongshan Public go up and down completely randomly.
Pair Corralation between Beijing Wantai and Zhongshan Public
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to under-perform the Zhongshan Public. In addition to that, Beijing Wantai is 1.68 times more volatile than Zhongshan Public Utilities. It trades about -0.08 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.02 per unit of volatility. If you would invest 909.00 in Zhongshan Public Utilities on December 27, 2024 and sell it today you would earn a total of 9.00 from holding Zhongshan Public Utilities or generate 0.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.28% |
Values | Daily Returns |
Beijing Wantai Biological vs. Zhongshan Public Utilities
Performance |
Timeline |
Beijing Wantai Biological |
Zhongshan Public Uti |
Beijing Wantai and Zhongshan Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Wantai and Zhongshan Public
The main advantage of trading using opposite Beijing Wantai and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.Beijing Wantai vs. Beijing Watertek Information | Beijing Wantai vs. BlueFocus Communication Group | Beijing Wantai vs. Wonders Information | Beijing Wantai vs. Sichuan Jinshi Technology |
Zhongshan Public vs. Cansino Biologics | Zhongshan Public vs. Primeton Information Technologies | Zhongshan Public vs. Marssenger Kitchenware Co | Zhongshan Public vs. Yindu Kitchen Equipment |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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