Correlation Between Beijing Yanjing and Sunwave Communications
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Sunwave Communications Co, you can compare the effects of market volatilities on Beijing Yanjing and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Sunwave Communications.
Diversification Opportunities for Beijing Yanjing and Sunwave Communications
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Sunwave is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Sunwave Communications go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Sunwave Communications
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.32 times more return on investment than Sunwave Communications. However, Beijing Yanjing Brewery is 3.09 times less risky than Sunwave Communications. It trades about 0.14 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about -0.05 per unit of risk. If you would invest 1,120 in Beijing Yanjing Brewery on October 22, 2024 and sell it today you would earn a total of 49.00 from holding Beijing Yanjing Brewery or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Sunwave Communications Co
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Sunwave Communications |
Beijing Yanjing and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Sunwave Communications
The main advantage of trading using opposite Beijing Yanjing and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Beijing Yanjing vs. Shanghai Shibei Hi Tech | Beijing Yanjing vs. AUPU Home Style | Beijing Yanjing vs. Kuang Chi Technologies | Beijing Yanjing vs. Hunan Mendale Hometextile |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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