Correlation Between Beijing Yanjing and Guangzhou Seagull
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Beijing Yanjing and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Guangzhou Seagull.
Diversification Opportunities for Beijing Yanjing and Guangzhou Seagull
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Guangzhou is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Guangzhou Seagull
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.51 times more return on investment than Guangzhou Seagull. However, Beijing Yanjing Brewery is 1.95 times less risky than Guangzhou Seagull. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.02 per unit of risk. If you would invest 1,047 in Beijing Yanjing Brewery on October 15, 2024 and sell it today you would earn a total of 79.00 from holding Beijing Yanjing Brewery or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Guangzhou Seagull Kitchen |
Beijing Yanjing and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Guangzhou Seagull
The main advantage of trading using opposite Beijing Yanjing and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Beijing Yanjing vs. Huaxia Fund Management | Beijing Yanjing vs. Innovative Medical Management | Beijing Yanjing vs. Jiaozuo Wanfang Aluminum | Beijing Yanjing vs. Hainan Airlines Co |
| Guangzhou Seagull vs. Hainan Haiqi Transportation | Guangzhou Seagull vs. Xinjiang Baodi Mining | Guangzhou Seagull vs. Hunan TV Broadcast | Guangzhou Seagull vs. Sichuan Fulin Transportation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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