Correlation Between Beijing Yanjing and Guangdong Skychem
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By analyzing existing cross correlation between Beijing Yanjing Brewery and Guangdong Skychem Technology, you can compare the effects of market volatilities on Beijing Yanjing and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Guangdong Skychem.
Diversification Opportunities for Beijing Yanjing and Guangdong Skychem
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Guangdong is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Guangdong Skychem
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to under-perform the Guangdong Skychem. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Yanjing Brewery is 2.32 times less risky than Guangdong Skychem. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Skychem Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,452 in Guangdong Skychem Technology on October 31, 2024 and sell it today you would earn a total of 1,798 from holding Guangdong Skychem Technology or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.42% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Guangdong Skychem |
Beijing Yanjing and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Guangdong Skychem
The main advantage of trading using opposite Beijing Yanjing and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Beijing Yanjing vs. Chongqing Changan Automobile | Beijing Yanjing vs. Iat Automobile Technology | Beijing Yanjing vs. Tianjin Hi Tech Development | Beijing Yanjing vs. CSSC Offshore Marine |
| Guangdong Skychem vs. Bloomage Biotechnology Corp | Guangdong Skychem vs. Financial Street Holdings | Guangdong Skychem vs. Gansu Huangtai Wine marketing | Guangdong Skychem vs. Postal Savings Bank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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