Correlation Between Qinghai Huzhu and Beijing Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qinghai Huzhu Barley and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Qinghai Huzhu 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 Qinghai Huzhu with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qinghai Huzhu and Beijing Sanyuan.
Diversification Opportunities for Qinghai Huzhu and Beijing Sanyuan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qinghai and Beijing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Qinghai Huzhu Barley 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 Qinghai Huzhu 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 Qinghai Huzhu Barley 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 Qinghai Huzhu i.e., Qinghai Huzhu and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Qinghai Huzhu and Beijing Sanyuan
Assuming the 90 days trading horizon Qinghai Huzhu is expected to generate 3.93 times less return on investment than Beijing Sanyuan. In addition to that, Qinghai Huzhu is 1.01 times more volatile than Beijing Sanyuan Foods. It trades about 0.06 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.26 per unit of volatility. If you would invest 444.00 in Beijing Sanyuan Foods on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Beijing Sanyuan Foods or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qinghai Huzhu Barley vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Qinghai Huzhu Barley |
| Beijing Sanyuan Foods |
Qinghai Huzhu and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qinghai Huzhu and Beijing Sanyuan
The main advantage of trading using opposite Qinghai Huzhu and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qinghai Huzhu 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.| Qinghai Huzhu vs. Henan Shuanghui Investment | Qinghai Huzhu vs. Guosheng Financial Holding | Qinghai Huzhu vs. Postal Savings Bank | Qinghai Huzhu vs. Tieling Newcity Investment |
| Beijing Sanyuan vs. Nanjing Putian Telecommunications | Beijing Sanyuan vs. Tianjin Realty Development | Beijing Sanyuan vs. Kangyue Technology Co | Beijing Sanyuan vs. Shenzhen Hifuture Electric |
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 Positions Ratings module to 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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |