Correlation Between Beijing Yanjing and Shengda Mining
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Shengda Mining Co, you can compare the effects of market volatilities on Beijing Yanjing and Shengda Mining 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 Yanjing with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Shengda Mining.
Diversification Opportunities for Beijing Yanjing and Shengda Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Shengda is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Beijing Yanjing 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 Yanjing Brewery are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Shengda Mining go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Shengda Mining
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.67 times more return on investment than Shengda Mining. However, Beijing Yanjing Brewery is 1.5 times less risky than Shengda Mining. It trades about 0.09 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.02 per unit of risk. If you would invest 1,050 in Beijing Yanjing Brewery on October 25, 2024 and sell it today you would earn a total of 93.00 from holding Beijing Yanjing Brewery or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Shengda Mining Co
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Shengda Mining |
Beijing Yanjing and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Shengda Mining
The main advantage of trading using opposite Beijing Yanjing and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Beijing Yanjing vs. Silkroad Visual Technology | Beijing Yanjing vs. Ping An Insurance | Beijing Yanjing vs. Hunan TV Broadcast | Beijing Yanjing vs. Guosheng Financial Holding |
| Shengda Mining vs. HeNan Splendor Science | Shengda Mining vs. Changchun UP Optotech | Shengda Mining vs. CGN Nuclear Technology | Shengda Mining vs. Ping An Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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