Correlation Between Xinjiang Tianrun and Beijing Sanyuan
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Beijing Sanyuan.
Diversification Opportunities for Xinjiang Tianrun and Beijing Sanyuan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Beijing Sanyuan
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Beijing Sanyuan. In addition to that, Xinjiang Tianrun is 1.28 times more volatile than Beijing Sanyuan Foods. It trades about -0.04 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of volatility. If you would invest 516.00 in Beijing Sanyuan Foods on December 4, 2024 and sell it today you would lose (94.00) from holding Beijing Sanyuan Foods or give up 18.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Beijing Sanyuan Foods |
Xinjiang Tianrun and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Beijing Sanyuan
The main advantage of trading using opposite Xinjiang Tianrun and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Shenzhen SDG Information | Xinjiang Tianrun vs. Wintao Communications Co | Xinjiang Tianrun vs. Aba Chemicals Corp | Xinjiang Tianrun vs. SI TECH Information Technology |
| Beijing Sanyuan vs. Mingchen Health Co | Beijing Sanyuan vs. Hangzhou Minsheng Healthcare | Beijing Sanyuan vs. Healthcare Co | Beijing Sanyuan vs. Heren Health Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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