Correlation Between Beijing SPC and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing SPC Environment and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Beijing SPC and Guangdong Jingyi 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 SPC with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Guangdong Jingyi.
Diversification Opportunities for Beijing SPC and Guangdong Jingyi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Beijing SPC 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 SPC Environment are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Beijing SPC i.e., Beijing SPC and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Beijing SPC and Guangdong Jingyi
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.61 times less risky than Guangdong Jingyi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 691.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Jingyi Metal or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Beijing SPC Environment |
| Guangdong Jingyi Metal |
Beijing SPC and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Guangdong Jingyi
The main advantage of trading using opposite Beijing SPC and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC vs. PetroChina Co Ltd |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |