Correlation Between Shandong Sanyuan and BeiGene
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and BeiGene, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and BeiGene.
Diversification Opportunities for Shandong Sanyuan and BeiGene
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and BeiGene is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and BeiGene go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and BeiGene
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.85 times more return on investment than BeiGene. However, Shandong Sanyuan Biotechnology is 1.18 times less risky than BeiGene. It trades about 0.13 of its potential returns per unit of risk. BeiGene is currently generating about 0.09 per unit of risk. If you would invest 2,414 in Shandong Sanyuan Biotechnology on September 12, 2024 and sell it today you would earn a total of 521.00 from holding Shandong Sanyuan Biotechnology or generate 21.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. BeiGene
Performance |
Timeline |
Shandong Sanyuan Bio |
BeiGene |
Shandong Sanyuan and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Sanyuan and BeiGene
The main advantage of trading using opposite Shandong Sanyuan and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.Shandong Sanyuan vs. China Petroleum Chemical | Shandong Sanyuan vs. PetroChina Co Ltd | Shandong Sanyuan vs. China State Construction | Shandong Sanyuan vs. China Railway Group |
BeiGene vs. Touchstone International Medical | BeiGene vs. Guizhou BroadcastingTV Info | BeiGene vs. Zhengping RoadBridge Constr | BeiGene vs. Hubeiyichang Transportation Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |