Correlation Between Beijing Yanjing and Eastroc Beverage
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Eastroc Beverage Group, you can compare the effects of market volatilities on Beijing Yanjing and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Eastroc Beverage.
Diversification Opportunities for Beijing Yanjing and Eastroc Beverage
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Eastroc is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Eastroc Beverage
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 1.1 times more return on investment than Eastroc Beverage. However, Beijing Yanjing is 1.1 times more volatile than Eastroc Beverage Group. It trades about 0.06 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.03 per unit of risk. If you would invest 1,021 in Beijing Yanjing Brewery on September 4, 2024 and sell it today you would earn a total of 19.00 from holding Beijing Yanjing Brewery or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Eastroc Beverage Group
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Eastroc Beverage |
Beijing Yanjing and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Eastroc Beverage
The main advantage of trading using opposite Beijing Yanjing and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Beijing Yanjing vs. Jiangsu Xinri E Vehicle | Beijing Yanjing vs. Offshore Oil Engineering | Beijing Yanjing vs. Beijing Mainstreets Investment | Beijing Yanjing vs. CIMC Vehicles Co |
| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
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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