Correlation Between Beijing Sanyuan and Miracll Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Sanyuan Foods and Miracll Chemicals Co, you can compare the effects of market volatilities on Beijing Sanyuan and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Miracll Chemicals.
Diversification Opportunities for Beijing Sanyuan and Miracll Chemicals
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Miracll is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Miracll Chemicals
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 0.63 times more return on investment than Miracll Chemicals. However, Beijing Sanyuan Foods is 1.58 times less risky than Miracll Chemicals. It trades about 0.16 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about -0.36 per unit of risk. If you would invest 446.00 in Beijing Sanyuan Foods on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Beijing Sanyuan Foods or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Miracll Chemicals Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Miracll Chemicals |
Beijing Sanyuan and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Miracll Chemicals
The main advantage of trading using opposite Beijing Sanyuan and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' 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 |
| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Wanhua Chemical Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Rongsheng Petrochemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |