Correlation Between Jiangsu Yanghe and Beijing Jiaman
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Beijing Jiaman Dress, you can compare the effects of market volatilities on Jiangsu Yanghe and Beijing Jiaman 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 Jiangsu Yanghe with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Beijing Jiaman.
Diversification Opportunities for Jiangsu Yanghe and Beijing Jiaman
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Beijing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Beijing Jiaman
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.5 times more return on investment than Beijing Jiaman. However, Jiangsu Yanghe Brewery is 2.0 times less risky than Beijing Jiaman. It trades about -0.39 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.28 per unit of risk. If you would invest 8,695 in Jiangsu Yanghe Brewery on October 13, 2024 and sell it today you would lose (863.00) from holding Jiangsu Yanghe Brewery or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Beijing Jiaman Dress |
Jiangsu Yanghe and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Beijing Jiaman
The main advantage of trading using opposite Jiangsu Yanghe and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Jiangsu Yanghe vs. Fiberhome Telecommunication Technologies | Jiangsu Yanghe vs. Xinjiang Beixin RoadBridge | Jiangsu Yanghe vs. Sunwave Communications Co | Jiangsu Yanghe vs. Guangxi Wuzhou Communications |
| Beijing Jiaman vs. Jiangsu Yanghe Brewery | Beijing Jiaman vs. Jinsanjiang Silicon Material | Beijing Jiaman vs. Liaoning Dingjide Petrochemical | Beijing Jiaman vs. Henan Shuanghui 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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