Correlation Between Beijing Yanjing and Shanghai OPM
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Beijing Yanjing and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Shanghai OPM.
Diversification Opportunities for Beijing Yanjing and Shanghai OPM
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shanghai is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Shanghai OPM go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Shanghai OPM
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.55 times more return on investment than Shanghai OPM. However, Beijing Yanjing Brewery is 1.82 times less risky than Shanghai OPM. It trades about 0.22 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.06 per unit of risk. If you would invest 1,039 in Beijing Yanjing Brewery on September 14, 2024 and sell it today you would earn a total of 81.00 from holding Beijing Yanjing Brewery or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Shanghai OPM Biosciences |
Beijing Yanjing and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Shanghai OPM
The main advantage of trading using opposite Beijing Yanjing and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM'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 |
| Shanghai OPM vs. Beijing Yanjing Brewery | Shanghai OPM vs. ZYF Lopsking Aluminum | Shanghai OPM vs. Spring Airlines Co | Shanghai OPM vs. Hefei Metalforming Mach |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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