Correlation Between Xian International and Beijing Sanyuan
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By analyzing existing cross correlation between Xian International Medical and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Xian International 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 Xian International with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Beijing Sanyuan.
Diversification Opportunities for Xian International and Beijing Sanyuan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical 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 Xian International 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 Xian International Medical 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 Xian International i.e., Xian International and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Xian International and Beijing Sanyuan
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Beijing Sanyuan. In addition to that, Xian International is 1.62 times more volatile than Beijing Sanyuan Foods. It trades about -0.04 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.0 per unit of volatility. If you would invest 518.00 in Beijing Sanyuan Foods on September 13, 2024 and sell it today you would lose (34.00) from holding Beijing Sanyuan Foods or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Xian International |
| Beijing Sanyuan Foods |
Xian International and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Beijing Sanyuan
The main advantage of trading using opposite Xian International and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International 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.| Xian International vs. HaiXin Foods Co | Xian International vs. JiShi Media Co | Xian International vs. Gan Yuan Foods | Xian International vs. Threes Company Media |
| Beijing Sanyuan vs. Nanjing Putian Telecommunications | Beijing Sanyuan vs. Tianjin Realty Development | Beijing Sanyuan vs. Kangyue Technology Co | Beijing Sanyuan vs. Shenzhen Hifuture Electric |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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