Correlation Between Beijing Enlight and Shandong Sanyuan
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By analyzing existing cross correlation between Beijing Enlight Media and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Beijing Enlight and Shandong 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 Beijing Enlight with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Shandong Sanyuan.
Diversification Opportunities for Beijing Enlight and Shandong Sanyuan
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shandong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio and Beijing Enlight 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 Enlight Media are associated (or correlated) with Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Beijing Enlight and Shandong Sanyuan
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.49 times more return on investment than Shandong Sanyuan. However, Beijing Enlight is 1.49 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 833.00 in Beijing Enlight Media on October 14, 2024 and sell it today you would earn a total of 14.00 from holding Beijing Enlight Media or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Beijing Enlight Media |
| Shandong Sanyuan Bio |
Beijing Enlight and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Shandong Sanyuan
The main advantage of trading using opposite Beijing Enlight and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Shandong 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Beijing Enlight vs. Xiamen Bank Co | Beijing Enlight vs. Zhejiang Construction Investment | Beijing Enlight vs. HeNan Splendor Science | Beijing Enlight vs. Lecron Energy Saving |
| Shandong Sanyuan vs. Beijing Enlight Media | Shandong Sanyuan vs. China Publishing Media | Shandong Sanyuan vs. Linewell Software Co | Shandong Sanyuan vs. Digiwin Software 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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