Correlation Between Beijing Yanjing and Impulse Qingdao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and Impulse Qingdao Health, you can compare the effects of market volatilities on Beijing Yanjing and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Impulse Qingdao.
Diversification Opportunities for Beijing Yanjing and Impulse Qingdao
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Impulse is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Impulse Qingdao
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Yanjing Brewery is 2.79 times less risky than Impulse Qingdao. The stock trades about -0.11 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,048 in Impulse Qingdao Health on November 7, 2024 and sell it today you would earn a total of 303.00 from holding Impulse Qingdao Health or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Impulse Qingdao Health
Performance |
| Timeline |
| Beijing Yanjing Brewery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Impulse Qingdao Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Beijing Yanjing and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Impulse Qingdao
The main advantage of trading using opposite Beijing Yanjing and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.The idea behind Beijing Yanjing Brewery and Impulse Qingdao Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |