Correlation Between BeiGene and Hangzhou Guotai
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By analyzing existing cross correlation between BeiGene and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on BeiGene and Hangzhou Guotai 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 Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hangzhou Guotai.
Diversification Opportunities for BeiGene and Hangzhou Guotai
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BeiGene and Hangzhou is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of BeiGene i.e., BeiGene and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between BeiGene and Hangzhou Guotai
Assuming the 90 days trading horizon BeiGene is expected to under-perform the Hangzhou Guotai. But the stock apears to be less risky and, when comparing its historical volatility, BeiGene is 1.68 times less risky than Hangzhou Guotai. The stock trades about -0.3 of its potential returns per unit of risk. The Hangzhou Guotai Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,136 in Hangzhou Guotai Environmental on October 9, 2024 and sell it today you would earn a total of 57.00 from holding Hangzhou Guotai Environmental or generate 1.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
BeiGene vs. Hangzhou Guotai Environmental
Performance |
Timeline |
BeiGene |
Hangzhou Guotai Envi |
BeiGene and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BeiGene and Hangzhou Guotai
The main advantage of trading using opposite BeiGene and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hangzhou Guotai 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 Hangzhou Guotai will offset losses from the drop in Hangzhou Guotai's long position.BeiGene vs. Hygon Information Technology | BeiGene vs. East Money Information | BeiGene vs. Invengo Information Technology | BeiGene vs. Sanbo Hospital Management |
Hangzhou Guotai vs. Shenzhen MYS Environmental | Hangzhou Guotai vs. AVIC Fund Management | Hangzhou Guotai vs. Rongan Property Co | Hangzhou Guotai vs. Haoxiangni Jujube Co |
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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