Correlation Between Anhui Shiny and Beijing Yanjing
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By analyzing existing cross correlation between Anhui Shiny Electronic and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Anhui Shiny and Beijing Yanjing 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 Anhui Shiny with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shiny and Beijing Yanjing.
Diversification Opportunities for Anhui Shiny and Beijing Yanjing
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shiny Electronic and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery and Anhui Shiny 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 Anhui Shiny Electronic are associated (or correlated) with Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Anhui Shiny i.e., Anhui Shiny and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Anhui Shiny and Beijing Yanjing
Assuming the 90 days trading horizon Anhui Shiny Electronic is expected to generate 2.56 times more return on investment than Beijing Yanjing. However, Anhui Shiny is 2.56 times more volatile than Beijing Yanjing Brewery. It trades about 0.04 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about -0.01 per unit of risk. If you would invest 1,543 in Anhui Shiny Electronic on November 6, 2024 and sell it today you would earn a total of 541.00 from holding Anhui Shiny Electronic or generate 35.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Shiny Electronic vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Anhui Shiny Electronic |
| Beijing Yanjing Brewery |
Anhui Shiny and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Shiny and Beijing Yanjing
The main advantage of trading using opposite Anhui Shiny and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shiny position performs unexpectedly, Beijing Yanjing 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 Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Anhui Shiny vs. Chengtun Mining Group | Anhui Shiny vs. Guangzhou Haozhi Industrial | Anhui Shiny vs. Zhejiang Zhengguang Industrial | Anhui Shiny vs. Xinhua Winshare Publishing |
| Beijing Yanjing vs. Western Mining Co | Beijing Yanjing vs. BizConf Telecom Co | Beijing Yanjing vs. Zijin Mining Group | Beijing Yanjing vs. Jiangxi Naipu Mining |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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