Correlation Between Beijing Yanjing and Rising Nonferrous
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Rising Nonferrous Metals, you can compare the effects of market volatilities on Beijing Yanjing and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Rising Nonferrous.
Diversification Opportunities for Beijing Yanjing and Rising Nonferrous
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Rising is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Rising Nonferrous
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.5 times more return on investment than Rising Nonferrous. However, Beijing Yanjing Brewery is 2.01 times less risky than Rising Nonferrous. It trades about -0.02 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.2 per unit of risk. If you would invest 1,040 in Beijing Yanjing Brewery on September 12, 2024 and sell it today you would lose (7.00) from holding Beijing Yanjing Brewery or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Rising Nonferrous Metals |
Beijing Yanjing and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Rising Nonferrous
The main advantage of trading using opposite Beijing Yanjing and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Beijing Yanjing vs. China Petroleum Chemical | Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China State Construction | Beijing Yanjing vs. China Railway Group |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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