Correlation Between Beijing Yanjing and Eastern Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and Eastern Air Logistics, you can compare the effects of market volatilities on Beijing Yanjing and Eastern Air 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 Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Eastern Air.
Diversification Opportunities for Beijing Yanjing and Eastern Air
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Eastern is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics 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 Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Eastern Air go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Eastern Air
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.85 times more return on investment than Eastern Air. However, Beijing Yanjing Brewery is 1.18 times less risky than Eastern Air. It trades about 0.13 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.04 per unit of risk. If you would invest 1,039 in Beijing Yanjing Brewery on September 13, 2024 and sell it today you would earn a total of 43.00 from holding Beijing Yanjing Brewery or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Eastern Air Logistics
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Eastern Air Logistics |
Beijing Yanjing and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Eastern Air
The main advantage of trading using opposite Beijing Yanjing and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Eastern Air 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 Eastern Air will offset losses from the drop in Eastern Air's long position.| Beijing Yanjing vs. Fiberhome Telecommunication Technologies | Beijing Yanjing vs. Western Mining Co | Beijing Yanjing vs. Hainan Mining Co | Beijing Yanjing vs. JCHX Mining Management |
| Eastern Air vs. Cultural Investment Holdings | Eastern Air vs. Gome Telecom Equipment | Eastern Air vs. Holitech Technology Co | Eastern Air vs. Zotye Automobile 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |