Correlation Between Zhongtong Guomai and Beijing Compass
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Beijing Compass Technology, you can compare the effects of market volatilities on Zhongtong Guomai and Beijing Compass 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 Zhongtong Guomai with a short position of Beijing Compass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Beijing Compass.
Diversification Opportunities for Zhongtong Guomai and Beijing Compass
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Beijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Beijing Compass Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Compass Tech and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Beijing Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Compass Tech has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Beijing Compass go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Beijing Compass
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Beijing Compass. But the stock apears to be less risky and, when comparing its historical volatility, Zhongtong Guomai Communication is 1.16 times less risky than Beijing Compass. The stock trades about -0.1 of its potential returns per unit of risk. The Beijing Compass Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,918 in Beijing Compass Technology on September 26, 2024 and sell it today you would earn a total of 730.00 from holding Beijing Compass Technology or generate 8.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Beijing Compass Technology
Performance |
Timeline |
Zhongtong Guomai Com |
Beijing Compass Tech |
Zhongtong Guomai and Beijing Compass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Beijing Compass
The main advantage of trading using opposite Zhongtong Guomai and Beijing Compass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Beijing Compass 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 Beijing Compass will offset losses from the drop in Beijing Compass' long position.Zhongtong Guomai vs. Kweichow Moutai Co | Zhongtong Guomai vs. Shenzhen Mindray Bio Medical | Zhongtong Guomai vs. Jiangsu Pacific Quartz | Zhongtong Guomai vs. G bits Network Technology |
Beijing Compass vs. Talkweb Information System | Beijing Compass vs. ButOne Information Corp | Beijing Compass vs. Emdoor Information Co | Beijing Compass vs. Longmaster Information Tech |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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