Correlation Between Beijing Mainstreets and Beijing Yanjing
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Beijing Mainstreets and Beijing Yanjing 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 Beijing Mainstreets with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Beijing Yanjing.
Diversification Opportunities for Beijing Mainstreets and Beijing Yanjing
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Beijing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Beijing Yanjing
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Beijing Yanjing. In addition to that, Beijing Mainstreets is 2.03 times more volatile than Beijing Yanjing Brewery. It trades about -0.03 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.01 per unit of volatility. If you would invest 1,066 in Beijing Yanjing Brewery on September 12, 2024 and sell it today you would lose (33.00) from holding Beijing Yanjing Brewery or give up 3.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Beijing Mainstreets |
| Beijing Yanjing Brewery |
Beijing Mainstreets and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Beijing Yanjing
The main advantage of trading using opposite Beijing Mainstreets and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Beijing Yanjing 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 Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Beijing Mainstreets vs. Industrial and Commercial | Beijing Mainstreets vs. China Construction Bank | Beijing Mainstreets vs. Bank of China | Beijing Mainstreets vs. Agricultural Bank of |
| Beijing Yanjing vs. China Petroleum Chemical | Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China State Construction | Beijing Yanjing vs. China Railway Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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