Correlation Between China Index and Bentley SystemsInc
Can any of the company-specific risk be diversified away by investing in both China Index and Bentley SystemsInc at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Index and Bentley SystemsInc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Index Holdings and Bentley SystemsInc, you can compare the effects of market volatilities on China Index and Bentley SystemsInc 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 China Index with a short position of Bentley SystemsInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Index and Bentley SystemsInc.
Diversification Opportunities for China Index and Bentley SystemsInc
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Bentley is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding China Index Holdings and Bentley SystemsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley SystemsInc and China Index 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 China Index Holdings are associated (or correlated) with Bentley SystemsInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley SystemsInc has no effect on the direction of China Index i.e., China Index and Bentley SystemsInc go up and down completely randomly.
Pair Corralation between China Index and Bentley SystemsInc
If you would invest 3,836 in Bentley SystemsInc on December 20, 2023 and sell it today you would earn a total of 1,051 from holding Bentley SystemsInc or generate 27.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Index Holdings vs. Bentley SystemsInc
Performance |
Timeline |
China Index Holdings |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Bentley SystemsInc |
China Index and Bentley SystemsInc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Index and Bentley SystemsInc
The main advantage of trading using opposite China Index and Bentley SystemsInc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Index position performs unexpectedly, Bentley SystemsInc 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 Bentley SystemsInc will offset losses from the drop in Bentley SystemsInc's long position.China Index vs. GlucoTrack | China Index vs. Lipocine | China Index vs. Ternium SA ADR | China Index vs. Viemed Healthcare |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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