Correlation Between Beijing Mainstreets and ZJBC Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Mainstreets Investment and ZJBC Information Technology, you can compare the effects of market volatilities on Beijing Mainstreets and ZJBC Information 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 Mainstreets with a short position of ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and ZJBC Information.
Diversification Opportunities for Beijing Mainstreets and ZJBC Information
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and ZJBC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec and Beijing Mainstreets 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 Mainstreets Investment are associated (or correlated) with ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and ZJBC Information go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and ZJBC Information
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the ZJBC Information. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Mainstreets Investment is 1.19 times less risky than ZJBC Information. The stock trades about -0.08 of its potential returns per unit of risk. The ZJBC Information Technology is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 240.00 in ZJBC Information Technology on September 24, 2024 and sell it today you would earn a total of 45.00 from holding ZJBC Information Technology or generate 18.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Mainstreets Investment vs. ZJBC Information Technology
Performance |
Timeline |
Beijing Mainstreets |
ZJBC Information Tec |
Beijing Mainstreets and ZJBC Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Mainstreets and ZJBC Information
The main advantage of trading using opposite Beijing Mainstreets and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.Beijing Mainstreets vs. Nanxing Furniture Machinery | Beijing Mainstreets vs. Jiajia Food Group | Beijing Mainstreets vs. Jiangsu Jinling Sports | Beijing Mainstreets vs. China Sports Industry |
ZJBC Information vs. Beijing Mainstreets Investment | ZJBC Information vs. Linewell Software Co | ZJBC Information vs. Zhejiang Construction Investment | ZJBC Information vs. China National Software |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |