Correlation Between Beijing Baolande and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Baolande Software and China Merchants Bank, you can compare the effects of market volatilities on Beijing Baolande 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 Beijing Baolande with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and China Merchants.
Diversification Opportunities for Beijing Baolande and China Merchants
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software 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 Beijing Baolande 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 Baolande Software 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 Beijing Baolande i.e., Beijing Baolande and China Merchants go up and down completely randomly.
Pair Corralation between Beijing Baolande and China Merchants
Assuming the 90 days trading horizon Beijing Baolande Software is expected to under-perform the China Merchants. In addition to that, Beijing Baolande is 2.64 times more volatile than China Merchants Bank. It trades about 0.0 of its total potential returns per unit of risk. China Merchants Bank is currently generating about 0.01 per unit of volatility. If you would invest 3,758 in China Merchants Bank on October 4, 2024 and sell it today you would earn a total of 172.00 from holding China Merchants Bank or generate 4.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Baolande Software vs. China Merchants Bank
Performance |
Timeline |
Beijing Baolande Software |
China Merchants Bank |
Beijing Baolande and China Merchants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Baolande and China Merchants
The main advantage of trading using opposite Beijing Baolande and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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.Beijing Baolande vs. Cambricon Technologies Corp | Beijing Baolande vs. SGSG Sciencetechnology Co | Beijing Baolande vs. Loongson Technology Corp | Beijing Baolande vs. Shenzhen Fortune Trend |
China Merchants vs. Tongding Interconnection Information | China Merchants vs. Leyard Optoelectronic | China Merchants vs. Epoxy Base Electronic | China Merchants vs. Zhuhai Comleader Information |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |