Correlation Between Zoje Resources and Beijing Sanyuan
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By analyzing existing cross correlation between Zoje Resources Investment and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Zoje Resources and Beijing Sanyuan 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 Zoje Resources with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Beijing Sanyuan.
Diversification Opportunities for Zoje Resources and Beijing Sanyuan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Zoje Resources i.e., Zoje Resources and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Zoje Resources and Beijing Sanyuan
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 2.0 times more return on investment than Beijing Sanyuan. However, Zoje Resources is 2.0 times more volatile than Beijing Sanyuan Foods. It trades about 0.05 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.01 per unit of risk. If you would invest 179.00 in Zoje Resources Investment on October 16, 2024 and sell it today you would earn a total of 62.00 from holding Zoje Resources Investment or generate 34.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Zoje Resources Investment |
| Beijing Sanyuan Foods |
Zoje Resources and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Beijing Sanyuan
The main advantage of trading using opposite Zoje Resources and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Beijing Sanyuan 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 Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Zoje Resources vs. Ningbo MedicalSystem Biotechnology | Zoje Resources vs. Guotai Epoint Software | Zoje Resources vs. Shenzhen Topway Video | Zoje Resources vs. Thunder Software Technology |
| Beijing Sanyuan vs. Beijing Mainstreets Investment | Beijing Sanyuan vs. Mengtian Home Group | Beijing Sanyuan vs. Zhongrun Resources Investment | Beijing Sanyuan vs. Zoje Resources Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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