Correlation Between Beijing Mainstreets and Sanan Optoelectronics
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Beijing Mainstreets and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Sanan Optoelectronics.
Diversification Opportunities for Beijing Mainstreets and Sanan Optoelectronics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Sanan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Sanan Optoelectronics
Assuming the 90 days trading horizon Beijing Mainstreets is expected to generate 1.71 times less return on investment than Sanan Optoelectronics. In addition to that, Beijing Mainstreets is 1.19 times more volatile than Sanan Optoelectronics Co. It trades about 0.06 of its total potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.13 per unit of volatility. If you would invest 1,024 in Sanan Optoelectronics Co on September 25, 2024 and sell it today you would earn a total of 228.00 from holding Sanan Optoelectronics Co or generate 22.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Beijing Mainstreets Investment vs. Sanan Optoelectronics Co
Performance |
Timeline |
Beijing Mainstreets |
Sanan Optoelectronics |
Beijing Mainstreets and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Mainstreets and Sanan Optoelectronics
The main advantage of trading using opposite Beijing Mainstreets and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. China Mobile Limited | Beijing Mainstreets vs. CNOOC Limited | Beijing Mainstreets vs. Ping An Insurance |
Sanan Optoelectronics vs. Ping An Insurance | Sanan Optoelectronics vs. 37 Interactive Entertainment | Sanan Optoelectronics vs. Shanghai Construction Group | Sanan Optoelectronics vs. Duzhe Publishing Media |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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