Correlation Between Beijing Jiaman and Gan Yuan
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By analyzing existing cross correlation between Beijing Jiaman Dress and Gan Yuan Foods, you can compare the effects of market volatilities on Beijing Jiaman and Gan Yuan 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 Jiaman with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Gan Yuan.
Diversification Opportunities for Beijing Jiaman and Gan Yuan
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Gan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Beijing Jiaman 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 Jiaman Dress are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Gan Yuan go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Gan Yuan
Assuming the 90 days trading horizon Beijing Jiaman is expected to generate 1.75 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Beijing Jiaman Dress is 1.25 times less risky than Gan Yuan. It trades about 0.07 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,073 in Gan Yuan Foods on December 10, 2024 and sell it today you would earn a total of 1,792 from holding Gan Yuan Foods or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Gan Yuan Foods
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Gan Yuan Foods |
Beijing Jiaman and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Gan Yuan
The main advantage of trading using opposite Beijing Jiaman and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Beijing Jiaman vs. Lootom Telcovideo Network | Beijing Jiaman vs. Western Metal Materials | Beijing Jiaman vs. CSSC Offshore Marine | Beijing Jiaman vs. Yinbang Clad Material |
| Gan Yuan vs. Camelot Electronics Technology | Gan Yuan vs. Ningbo Kangqiang Electronics | Gan Yuan vs. LianChuang Electronic Technology | Gan Yuan vs. Zijin Mining Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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