Correlation Between BeiGene and Hang Xiao
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By analyzing existing cross correlation between BeiGene and Hang Xiao Steel, you can compare the effects of market volatilities on BeiGene and Hang Xiao 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 BeiGene with a short position of Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hang Xiao.
Diversification Opportunities for BeiGene and Hang Xiao
Very weak diversification
The 3 months correlation between BeiGene and Hang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel and BeiGene 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 BeiGene are associated (or correlated) with Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of BeiGene i.e., BeiGene and Hang Xiao go up and down completely randomly.
Pair Corralation between BeiGene and Hang Xiao
Assuming the 90 days trading horizon BeiGene is expected to generate 1.27 times less return on investment than Hang Xiao. In addition to that, BeiGene is 1.06 times more volatile than Hang Xiao Steel. It trades about 0.05 of its total potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.06 per unit of volatility. If you would invest 245.00 in Hang Xiao Steel on September 26, 2024 and sell it today you would earn a total of 21.00 from holding Hang Xiao Steel or generate 8.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BeiGene vs. Hang Xiao Steel
Performance |
Timeline |
BeiGene |
Hang Xiao Steel |
BeiGene and Hang Xiao Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BeiGene and Hang Xiao
The main advantage of trading using opposite BeiGene and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.BeiGene vs. Zhongtong Guomai Communication | BeiGene vs. Xinjiang Communications Construction | BeiGene vs. Railway Signal Communication | BeiGene vs. TianJin 712 Communication |
Hang Xiao vs. BeiGene | Hang Xiao vs. Kweichow Moutai Co | Hang Xiao vs. Beijing Roborock Technology | Hang Xiao vs. G bits Network Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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