Correlation Between Yuan Longping and Beijing Wantai
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By analyzing existing cross correlation between Yuan Longping High tech and Beijing Wantai Biological, you can compare the effects of market volatilities on Yuan Longping and Beijing Wantai 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 Yuan Longping with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Beijing Wantai.
Diversification Opportunities for Yuan Longping and Beijing Wantai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yuan and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Yuan Longping i.e., Yuan Longping and Beijing Wantai go up and down completely randomly.
Pair Corralation between Yuan Longping and Beijing Wantai
Assuming the 90 days trading horizon Yuan Longping High tech is expected to generate 1.13 times more return on investment than Beijing Wantai. However, Yuan Longping is 1.13 times more volatile than Beijing Wantai Biological. It trades about 0.12 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.1 per unit of risk. If you would invest 927.00 in Yuan Longping High tech on September 12, 2024 and sell it today you would earn a total of 178.00 from holding Yuan Longping High tech or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Beijing Wantai Biological
Performance |
| Timeline |
| Yuan Longping High |
| Beijing Wantai Biological |
Yuan Longping and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Beijing Wantai
The main advantage of trading using opposite Yuan Longping and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Yuan Longping vs. China Petroleum Chemical | Yuan Longping vs. PetroChina Co Ltd | Yuan Longping vs. China State Construction | Yuan Longping vs. China Railway Group |
| Beijing Wantai vs. Ningbo Ligong Online | Beijing Wantai vs. Shenzhen Silver Basis | Beijing Wantai vs. Easyhome New Retail | Beijing Wantai vs. Luolai Home Textile |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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