Correlation Between Beijing Enlight and Beijing Sanyuan
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By analyzing existing cross correlation between Beijing Enlight Media and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Beijing Enlight 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 Beijing Enlight with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Beijing Sanyuan.
Diversification Opportunities for Beijing Enlight and Beijing Sanyuan
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Beijing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media 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 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 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 Beijing Enlight i.e., Beijing Enlight and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Beijing Enlight and Beijing Sanyuan
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.09 times more return on investment than Beijing Sanyuan. However, Beijing Enlight is 1.09 times more volatile than Beijing Sanyuan Foods. It trades about 0.07 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.21 per unit of risk. If you would invest 929.00 in Beijing Enlight Media on November 3, 2024 and sell it today you would earn a total of 24.00 from holding Beijing Enlight Media or generate 2.58% 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. Beijing Sanyuan Foods
Performance |
| Timeline |
| Beijing Enlight Media |
| Beijing Sanyuan Foods |
Beijing Enlight and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Beijing Sanyuan
The main advantage of trading using opposite Beijing Enlight and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight 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.| Beijing Enlight vs. Anhui Tongguan Copper | Beijing Enlight vs. Holitech Technology Co | Beijing Enlight vs. Zhengzhou Coal Mining | Beijing Enlight vs. Jinhe Biotechnology Co |
| Beijing Sanyuan vs. Quectel Wireless Solutions | Beijing Sanyuan vs. Xiamen Goldenhome Co | Beijing Sanyuan vs. Zoy Home Furnishing | Beijing Sanyuan vs. Chongqing Changan Automobile |
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 CEOs Directory module to screen CEOs from public companies around the world.
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