Correlation Between Zhejiang Daily and Beijing Bashi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Daily Media and Beijing Bashi Media, you can compare the effects of market volatilities on Zhejiang Daily and Beijing Bashi 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 Zhejiang Daily with a short position of Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Beijing Bashi.
Diversification Opportunities for Zhejiang Daily and Beijing Bashi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media and Zhejiang Daily 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 Zhejiang Daily Media are associated (or correlated) with Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and Beijing Bashi go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Beijing Bashi
Assuming the 90 days trading horizon Zhejiang Daily is expected to generate 1.24 times less return on investment than Beijing Bashi. But when comparing it to its historical volatility, Zhejiang Daily Media is 1.13 times less risky than Beijing Bashi. It trades about 0.2 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Beijing Bashi Media on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Beijing Bashi Media or generate 51.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Daily Media vs. Beijing Bashi Media
Performance |
Timeline |
Zhejiang Daily Media |
Beijing Bashi Media |
Zhejiang Daily and Beijing Bashi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Daily and Beijing Bashi
The main advantage of trading using opposite Zhejiang Daily and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi's long position.Zhejiang Daily vs. Kweichow Moutai Co | Zhejiang Daily vs. Shenzhen Mindray Bio Medical | Zhejiang Daily vs. G bits Network Technology | Zhejiang Daily vs. Beijing Roborock Technology |
Beijing Bashi vs. Lutian Machinery Co | Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. Bank of China | Beijing Bashi vs. Gansu Jiu Steel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |