Correlation Between Beijing Mainstreets and Anhui Deli
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Anhui Deli Household, you can compare the effects of market volatilities on Beijing Mainstreets and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Anhui Deli.
Diversification Opportunities for Beijing Mainstreets and Anhui Deli
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Anhui is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Anhui Deli go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Anhui Deli
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Anhui Deli. In addition to that, Beijing Mainstreets is 1.21 times more volatile than Anhui Deli Household. It trades about -0.06 of its total potential returns per unit of risk. Anhui Deli Household is currently generating about -0.01 per unit of volatility. If you would invest 661.00 in Anhui Deli Household on September 14, 2024 and sell it today you would lose (132.00) from holding Anhui Deli Household or give up 19.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Anhui Deli Household
Performance |
| Timeline |
| Beijing Mainstreets |
| Anhui Deli Household |
Beijing Mainstreets and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Anhui Deli
The main advantage of trading using opposite Beijing Mainstreets and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Bank of China |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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