Correlation Between Henan Lantian and BeiGene
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By analyzing existing cross correlation between Henan Lantian Gas and BeiGene, you can compare the effects of market volatilities on Henan Lantian 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 Henan Lantian with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and BeiGene.
Diversification Opportunities for Henan Lantian and BeiGene
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Henan and BeiGene is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Henan Lantian 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 Henan Lantian Gas 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 Henan Lantian i.e., Henan Lantian and BeiGene go up and down completely randomly.
Pair Corralation between Henan Lantian and BeiGene
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Henan Lantian Gas is 1.49 times less risky than BeiGene. The stock trades about -0.08 of its potential returns per unit of risk. The BeiGene is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15,235 in BeiGene on September 26, 2024 and sell it today you would earn a total of 886.00 from holding BeiGene or generate 5.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Henan Lantian Gas vs. BeiGene
Performance |
Timeline |
Henan Lantian Gas |
BeiGene |
Henan Lantian and BeiGene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Lantian and BeiGene
The main advantage of trading using opposite Henan Lantian and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian 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.Henan Lantian vs. BeiGene | Henan Lantian vs. Kweichow Moutai Co | Henan Lantian vs. Beijing Roborock Technology | Henan Lantian 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 CEOs Directory module to screen CEOs from public companies around the world.
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