Correlation Between Beijing Yanjing and Tangshan Port
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Tangshan Port Group, you can compare the effects of market volatilities on Beijing Yanjing and Tangshan Port 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 Tangshan Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Tangshan Port.
Diversification Opportunities for Beijing Yanjing and Tangshan Port
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Tangshan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Tangshan Port Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangshan Port Group 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 Tangshan Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangshan Port Group has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Tangshan Port go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Tangshan Port
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 1.07 times more return on investment than Tangshan Port. However, Beijing Yanjing is 1.07 times more volatile than Tangshan Port Group. It trades about 0.28 of its potential returns per unit of risk. Tangshan Port Group is currently generating about 0.09 per unit of risk. If you would invest 1,019 in Beijing Yanjing Brewery on September 15, 2024 and sell it today you would earn a total of 99.00 from holding Beijing Yanjing Brewery or generate 9.72% 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. Tangshan Port Group
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Tangshan Port Group |
Beijing Yanjing and Tangshan Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Tangshan Port
The main advantage of trading using opposite Beijing Yanjing and Tangshan Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Tangshan Port 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 Tangshan Port will offset losses from the drop in Tangshan Port's long position.| Beijing Yanjing vs. Industrial and Commercial | Beijing Yanjing vs. Kweichow Moutai Co | Beijing Yanjing vs. Agricultural Bank of | Beijing Yanjing vs. China Mobile Limited |
| Tangshan Port vs. Beijing Yanjing Brewery | Tangshan Port vs. Linewell Software Co | Tangshan Port vs. Dhc Software Co | Tangshan Port vs. Northking Information Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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