Correlation Between North Huajin and Beijing Sanyuan
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By analyzing existing cross correlation between North Huajin Chemical and Beijing Sanyuan Foods, you can compare the effects of market volatilities on North Huajin and Beijing Sanyuan 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 North Huajin with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Beijing Sanyuan.
Diversification Opportunities for North Huajin and Beijing Sanyuan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods and North Huajin 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 North Huajin Chemical are associated (or correlated) with Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of North Huajin i.e., North Huajin and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between North Huajin and Beijing Sanyuan
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Beijing Sanyuan. In addition to that, North Huajin is 1.62 times more volatile than Beijing Sanyuan Foods. It trades about -0.01 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.01 per unit of volatility. If you would invest 534.00 in Beijing Sanyuan Foods on September 5, 2024 and sell it today you would lose (79.00) from holding Beijing Sanyuan Foods or give up 14.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| North Huajin Chemical |
| Beijing Sanyuan Foods |
North Huajin and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Beijing Sanyuan
The main advantage of trading using opposite North Huajin and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Beijing Sanyuan 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 Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Beijing Sanyuan vs. Xian International Medical | Beijing Sanyuan vs. Xinjiang Zhongtai Chemical | Beijing Sanyuan vs. Xilong Chemical Co | Beijing Sanyuan vs. North Huajin Chemical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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