Correlation Between Beijing Sanyuan and Xiamen Jihong
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Xiamen Jihong Package, you can compare the effects of market volatilities on Beijing Sanyuan and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Xiamen Jihong.
Diversification Opportunities for Beijing Sanyuan and Xiamen Jihong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Xiamen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Xiamen Jihong
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 0.6 times more return on investment than Xiamen Jihong. However, Beijing Sanyuan Foods is 1.68 times less risky than Xiamen Jihong. It trades about 0.02 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.02 per unit of risk. If you would invest 455.00 in Beijing Sanyuan Foods on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Beijing Sanyuan Foods or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Xiamen Jihong Package
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Xiamen Jihong Package |
Beijing Sanyuan and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Xiamen Jihong
The main advantage of trading using opposite Beijing Sanyuan and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Beijing Sanyuan vs. China Petroleum Chemical | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. China State Construction | Beijing Sanyuan vs. China Railway Group |
| Xiamen Jihong vs. Zhengzhou Qianweiyangchu Food | Xiamen Jihong vs. Great Sun Foods Co | Xiamen Jihong vs. Shandong Iron and | Xiamen Jihong vs. Beijing Sanyuan Foods |
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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