Correlation Between Tonghua Grape and Beijing Wantai
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By analyzing existing cross correlation between Tonghua Grape Wine and Beijing Wantai Biological, you can compare the effects of market volatilities on Tonghua Grape and Beijing Wantai 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 Tonghua Grape with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Beijing Wantai.
Diversification Opportunities for Tonghua Grape and Beijing Wantai
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tonghua and Beijing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and Tonghua Grape 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 Tonghua Grape Wine are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Tonghua Grape i.e., Tonghua Grape and Beijing Wantai go up and down completely randomly.
Pair Corralation between Tonghua Grape and Beijing Wantai
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to under-perform the Beijing Wantai. But the stock apears to be less risky and, when comparing its historical volatility, Tonghua Grape Wine is 1.21 times less risky than Beijing Wantai. The stock trades about -0.03 of its potential returns per unit of risk. The Beijing Wantai Biological is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,992 in Beijing Wantai Biological on September 3, 2024 and sell it today you would lose (2,698) from holding Beijing Wantai Biological or give up 27.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Beijing Wantai Biological
Performance |
| Timeline |
| Tonghua Grape Wine |
| Beijing Wantai Biological |
Tonghua Grape and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Beijing Wantai
The main advantage of trading using opposite Tonghua Grape and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| Tonghua Grape vs. Beijing Wantai Biological | Tonghua Grape vs. Aluminum Corp of | Tonghua Grape vs. COL Digital Publishing | Tonghua Grape vs. Shaanxi Meineng Clean |
| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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