Correlation Between Beijing Jiaman and Shandong Ruifeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Jiaman Dress and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Beijing Jiaman and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Shandong Ruifeng.
Diversification Opportunities for Beijing Jiaman and Shandong Ruifeng
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 Jiaman Dress and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Shandong Ruifeng
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 1.1 times more return on investment than Shandong Ruifeng. However, Beijing Jiaman is 1.1 times more volatile than Shandong Ruifeng Chemical. It trades about -0.06 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about -0.14 per unit of risk. If you would invest 2,066 in Beijing Jiaman Dress on October 31, 2024 and sell it today you would lose (65.00) from holding Beijing Jiaman Dress or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Shandong Ruifeng Chemical |
Beijing Jiaman and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Shandong Ruifeng
The main advantage of trading using opposite Beijing Jiaman and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Shandong Ruifeng 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 Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| Beijing Jiaman vs. Zhengping RoadBridge Constr | Beijing Jiaman vs. Tongxing Environmental Protection | Beijing Jiaman vs. Wuxi Xuelang Environmental | Beijing Jiaman vs. Hunan TV Broadcast |
| Shandong Ruifeng vs. Shandong Polymer Biochemicals | Shandong Ruifeng vs. Shenzhen Noposion Agrochemicals | Shandong Ruifeng vs. Jiangsu Financial Leasing | Shandong Ruifeng vs. Gansu Huangtai Wine marketing |
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.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |