Correlation Between Beijing Yanjing and CITIC Guoan
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By analyzing existing cross correlation between Beijing Yanjing Brewery and CITIC Guoan Information, you can compare the effects of market volatilities on Beijing Yanjing and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and CITIC Guoan.
Diversification Opportunities for Beijing Yanjing and CITIC Guoan
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and CITIC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and CITIC Guoan go up and down completely randomly.
Pair Corralation between Beijing Yanjing and CITIC Guoan
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 3.72 times less return on investment than CITIC Guoan. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 1.49 times less risky than CITIC Guoan. It trades about 0.03 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 235.00 in CITIC Guoan Information on September 4, 2024 and sell it today you would earn a total of 133.00 from holding CITIC Guoan Information or generate 56.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. CITIC Guoan Information
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| CITIC Guoan Information |
Beijing Yanjing and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and CITIC Guoan
The main advantage of trading using opposite Beijing Yanjing and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Beijing Yanjing vs. Jiangsu Xinri E Vehicle | Beijing Yanjing vs. Offshore Oil Engineering | Beijing Yanjing vs. Beijing Mainstreets Investment | Beijing Yanjing vs. CIMC Vehicles Co |
| CITIC Guoan vs. Zhejiang Qianjiang Motorcycle | CITIC Guoan vs. Hubei Dinglong Chemical | CITIC Guoan vs. Haima Automobile Group | CITIC Guoan vs. Jiangsu Xinri E Vehicle |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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