Correlation Between Beijing Yanjing and Huasi Agricultural
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Huasi Agricultural Development, you can compare the effects of market volatilities on Beijing Yanjing and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Huasi Agricultural.
Diversification Opportunities for Beijing Yanjing and Huasi Agricultural
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Huasi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Huasi Agricultural
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 1.27 times less return on investment than Huasi Agricultural. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 1.6 times less risky than Huasi Agricultural. It trades about 0.06 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Huasi Agricultural Development on October 14, 2024 and sell it today you would earn a total of 61.00 from holding Huasi Agricultural Development or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Huasi Agricultural Development
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Huasi Agricultural |
Beijing Yanjing and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Huasi Agricultural
The main advantage of trading using opposite Beijing Yanjing and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Beijing Yanjing vs. Anhui Xinhua Media | Beijing Yanjing vs. Guangdong Jinma Entertainment | Beijing Yanjing vs. Mango Excellent Media | Beijing Yanjing vs. Suzhou Mingzhi Technology |
| Huasi Agricultural vs. Iat Automobile Technology | Huasi Agricultural vs. Haima Automobile Group | Huasi Agricultural vs. Beijing Yanjing Brewery | Huasi Agricultural vs. Dongfeng Automobile Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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