Correlation Between Beijing Yanjing and East Money
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and East Money Information, you can compare the effects of market volatilities on Beijing Yanjing and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and East Money.
Diversification Opportunities for Beijing Yanjing and East Money
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and East is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and East Money go up and down completely randomly.
Pair Corralation between Beijing Yanjing and East Money
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Yanjing Brewery is 1.83 times less risky than East Money. The stock trades about -0.2 of its potential returns per unit of risk. The East Money Information is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,256 in East Money Information on November 9, 2024 and sell it today you would earn a total of 113.00 from holding East Money Information or generate 5.01% 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. East Money Information
Performance |
| Timeline |
| Beijing Yanjing Brewery |
Risk-Adjusted Performance
Modest
Weak | Strong |
| East Money Information |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Beijing Yanjing and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and East Money
The main advantage of trading using opposite Beijing Yanjing and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.The idea behind Beijing Yanjing Brewery and East Money Information 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |