Correlation Between Beijing Yanjing and Everdisplay Optronics
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Beijing Yanjing and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Everdisplay Optronics.
Diversification Opportunities for Beijing Yanjing and Everdisplay Optronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Everdisplay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Everdisplay Optronics
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 1.55 times less return on investment than Everdisplay Optronics. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 1.02 times less risky than Everdisplay Optronics. It trades about 0.05 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Everdisplay Optronics Shanghai on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Everdisplay Optronics Shanghai or generate 19.61% 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. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Everdisplay Optronics |
Beijing Yanjing and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Everdisplay Optronics
The main advantage of trading using opposite Beijing Yanjing and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| Beijing Yanjing vs. BeiGene | Beijing Yanjing vs. Kweichow Moutai Co | Beijing Yanjing vs. Beijing Roborock Technology | Beijing Yanjing vs. G bits Network Technology |
| Everdisplay Optronics vs. Cultural Investment Holdings | Everdisplay Optronics vs. Gome Telecom Equipment | Everdisplay Optronics vs. Bus Online Co | Everdisplay Optronics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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