Correlation Between Beijing Mainstreets and Jiangsu Yanghe
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Beijing Mainstreets and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Jiangsu Yanghe.
Diversification Opportunities for Beijing Mainstreets and Jiangsu Yanghe
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Jiangsu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Jiangsu Yanghe
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 3.07 times more return on investment than Jiangsu Yanghe. However, Beijing Mainstreets is 3.07 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.02 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.17 per unit of risk. If you would invest 261.00 in Beijing Mainstreets Investment on October 17, 2024 and sell it today you would lose (7.00) from holding Beijing Mainstreets Investment or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Beijing Mainstreets |
| Jiangsu Yanghe Brewery |
Beijing Mainstreets and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Jiangsu Yanghe
The main advantage of trading using opposite Beijing Mainstreets and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Beijing Mainstreets vs. Heilongjiang Publishing Media | Beijing Mainstreets vs. Beijing Kingsoft Office | Beijing Mainstreets vs. Changjiang Publishing Media | Beijing Mainstreets vs. Duzhe Publishing Media |
| Jiangsu Yanghe vs. Beijing Mainstreets Investment | Jiangsu Yanghe vs. Harbin Hatou Investment | Jiangsu Yanghe vs. Jinhe Biotechnology Co | Jiangsu Yanghe vs. Bloomage Biotechnology Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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