Correlation Between Beijing Yanjing and Inner Mongolia
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Inner Mongolia Dazhong, you can compare the effects of market volatilities on Beijing Yanjing and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Inner Mongolia.
Diversification Opportunities for Beijing Yanjing and Inner Mongolia
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beijing and Inner is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Dazhong has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Inner Mongolia go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Inner Mongolia
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.8 times more return on investment than Inner Mongolia. However, Beijing Yanjing Brewery is 1.25 times less risky than Inner Mongolia. It trades about 0.08 of its potential returns per unit of risk. Inner Mongolia Dazhong is currently generating about 0.03 per unit of risk. If you would invest 957.00 in Beijing Yanjing Brewery on November 3, 2024 and sell it today you would earn a total of 174.00 from holding Beijing Yanjing Brewery or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Inner Mongolia Dazhong |
Beijing Yanjing and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Inner Mongolia
The main advantage of trading using opposite Beijing Yanjing and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Beijing Yanjing vs. Newcapec Electronics Co | Beijing Yanjing vs. Xinya Electronic Co | Beijing Yanjing vs. Weihai Honglin Electronic | Beijing Yanjing vs. Dongguan Tarry Electronics |
| Inner Mongolia vs. Zijin Mining Group | Inner Mongolia vs. Wanhua Chemical Group | Inner Mongolia vs. Baoshan Iron Steel | Inner Mongolia vs. Shandong Gold Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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