Correlation Between Hengli Industrial and BeiGene
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By analyzing existing cross correlation between Hengli Industrial Development and BeiGene, you can compare the effects of market volatilities on Hengli Industrial and BeiGene 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 Hengli Industrial with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and BeiGene.
Diversification Opportunities for Hengli Industrial and BeiGene
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hengli and BeiGene is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and BeiGene go up and down completely randomly.
Pair Corralation between Hengli Industrial and BeiGene
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.07 times more return on investment than BeiGene. However, Hengli Industrial is 1.07 times more volatile than BeiGene. It trades about 0.14 of its potential returns per unit of risk. BeiGene is currently generating about 0.05 per unit of risk. If you would invest 182.00 in Hengli Industrial Development on September 13, 2024 and sell it today you would earn a total of 51.00 from holding Hengli Industrial Development or generate 28.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hengli Industrial Development vs. BeiGene
Performance |
Timeline |
Hengli Industrial |
BeiGene |
Hengli Industrial and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengli Industrial and BeiGene
The main advantage of trading using opposite Hengli Industrial and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.Hengli Industrial vs. BeiGene | Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Beijing Roborock Technology | Hengli Industrial vs. G bits Network Technology |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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