Correlation Between Beijing Yuanlong and Tonghua Grape
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By analyzing existing cross correlation between Beijing Yuanlong Yato and Tonghua Grape Wine, you can compare the effects of market volatilities on Beijing Yuanlong and Tonghua Grape 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 Yuanlong with a short position of Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yuanlong and Tonghua Grape.
Diversification Opportunities for Beijing Yuanlong and Tonghua Grape
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Tonghua is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yuanlong Yato and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine and Beijing Yuanlong 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 Yuanlong Yato are associated (or correlated) with Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Beijing Yuanlong i.e., Beijing Yuanlong and Tonghua Grape go up and down completely randomly.
Pair Corralation between Beijing Yuanlong and Tonghua Grape
Assuming the 90 days trading horizon Beijing Yuanlong Yato is expected to generate 2.44 times more return on investment than Tonghua Grape. However, Beijing Yuanlong is 2.44 times more volatile than Tonghua Grape Wine. It trades about 0.3 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about 0.16 per unit of risk. If you would invest 1,186 in Beijing Yuanlong Yato on September 5, 2024 and sell it today you would earn a total of 493.00 from holding Beijing Yuanlong Yato or generate 41.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yuanlong Yato vs. Tonghua Grape Wine
Performance |
| Timeline |
| Beijing Yuanlong Yato |
| Tonghua Grape Wine |
Beijing Yuanlong and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yuanlong and Tonghua Grape
The main advantage of trading using opposite Beijing Yuanlong and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yuanlong position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Beijing Yuanlong vs. Tonghua Grape Wine | Beijing Yuanlong vs. Bank of Suzhou | Beijing Yuanlong vs. Sobute New Materials | Beijing Yuanlong vs. Jinling Hotel Corp |
| Tonghua Grape vs. Industrial and Commercial | Tonghua Grape vs. Agricultural Bank of | Tonghua Grape vs. China Construction Bank | Tonghua Grape vs. Bank of China |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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