Correlation Between BeiGene and Guangdong Xiongsu
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By analyzing existing cross correlation between BeiGene and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on BeiGene and Guangdong Xiongsu 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 BeiGene with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Guangdong Xiongsu.
Diversification Opportunities for BeiGene and Guangdong Xiongsu
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between BeiGene and Guangdong is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and BeiGene 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 BeiGene are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of BeiGene i.e., BeiGene and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between BeiGene and Guangdong Xiongsu
Assuming the 90 days trading horizon BeiGene is expected to generate 0.22 times more return on investment than Guangdong Xiongsu. However, BeiGene is 4.65 times less risky than Guangdong Xiongsu. It trades about -0.3 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.1 per unit of risk. If you would invest 16,891 in BeiGene on October 9, 2024 and sell it today you would lose (1,211) from holding BeiGene or give up 7.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BeiGene vs. Guangdong Xiongsu Technology
Performance |
Timeline |
BeiGene |
Guangdong Xiongsu |
BeiGene and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BeiGene and Guangdong Xiongsu
The main advantage of trading using opposite BeiGene and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.BeiGene vs. Heren Health Co | BeiGene vs. Humanwell Healthcare Group | BeiGene vs. De Rucci Healthy | BeiGene vs. Impulse Qingdao Health |
Guangdong Xiongsu vs. Xinjiang Baodi Mining | Guangdong Xiongsu vs. Eastroc Beverage Group | Guangdong Xiongsu vs. Hefei Metalforming Mach | Guangdong Xiongsu vs. Pengxin International Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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