Correlation Between Beijing Yanjing and Beijing Lanxum
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Beijing Lanxum Tech, you can compare the effects of market volatilities on Beijing Yanjing and Beijing Lanxum 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 Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Beijing Lanxum.
Diversification Opportunities for Beijing Yanjing and Beijing Lanxum
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Beijing is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech 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 Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Beijing Lanxum
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 22.0 times less return on investment than Beijing Lanxum. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 2.43 times less risky than Beijing Lanxum. It trades about 0.01 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Beijing Lanxum Tech on September 5, 2024 and sell it today you would earn a total of 667.00 from holding Beijing Lanxum Tech or generate 172.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Beijing Lanxum Tech
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Beijing Lanxum Tech |
Beijing Yanjing and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Beijing Lanxum
The main advantage of trading using opposite Beijing Yanjing and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.| Beijing Yanjing vs. Super Dragon Engineering Plastics | Beijing Yanjing vs. Ningbo Tip Rubber | Beijing Yanjing vs. Jiangnan Mould Plastic | Beijing Yanjing vs. Renxin New Material |
| Beijing Lanxum vs. Thinkingdom Media Group | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Beijing Yanjing Brewery | Beijing Lanxum vs. Shanghai Yaoji Playing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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