Correlation Between Beijing Yanjing and Shaanxi Beiyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Beijing Yanjing and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Shaanxi Beiyuan.
Diversification Opportunities for Beijing Yanjing and Shaanxi Beiyuan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shaanxi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Shaanxi Beiyuan
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 1.04 times less return on investment than Shaanxi Beiyuan. In addition to that, Beijing Yanjing is 1.1 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.13 of its total potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about 0.15 per unit of volatility. If you would invest 438.00 in Shaanxi Beiyuan Chemical on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Shaanxi Beiyuan Chemical or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Shaanxi Beiyuan Chemical |
Beijing Yanjing and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Shaanxi Beiyuan
The main advantage of trading using opposite Beijing Yanjing and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan'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 |
| Shaanxi Beiyuan vs. Great Sun Foods Co | Shaanxi Beiyuan vs. Kontour Medical Technology | Shaanxi Beiyuan vs. Eastroc Beverage Group | Shaanxi Beiyuan vs. Beijing Yanjing Brewery |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |