Correlation Between Beijing Sanyuan and Songz Automobile
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Songz Automobile Air, you can compare the effects of market volatilities on Beijing Sanyuan and Songz Automobile 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 Sanyuan with a short position of Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Songz Automobile.
Diversification Opportunities for Beijing Sanyuan and Songz Automobile
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Songz is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air and Beijing Sanyuan 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 Sanyuan Foods are associated (or correlated) with Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Songz Automobile go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Songz Automobile
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Songz Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.01 times less risky than Songz Automobile. The stock trades about -0.21 of its potential returns per unit of risk. The Songz Automobile Air is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 645.00 in Songz Automobile Air on November 3, 2024 and sell it today you would earn a total of 24.00 from holding Songz Automobile Air or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Songz Automobile Air
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Songz Automobile Air |
Beijing Sanyuan and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Songz Automobile
The main advantage of trading using opposite Beijing Sanyuan and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Beijing Sanyuan vs. Quectel Wireless Solutions | Beijing Sanyuan vs. Xiamen Goldenhome Co | Beijing Sanyuan vs. Zoy Home Furnishing | Beijing Sanyuan vs. Chongqing Changan Automobile |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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