Correlation Between Beijing Sanyuan and Qinghaihuading Industrial
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Beijing Sanyuan and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Qinghaihuading Industrial.
Diversification Opportunities for Beijing Sanyuan and Qinghaihuading Industrial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Qinghaihuading is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Qinghaihuading Industrial
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 0.52 times more return on investment than Qinghaihuading Industrial. However, Beijing Sanyuan Foods is 1.92 times less risky than Qinghaihuading Industrial. It trades about -0.2 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about -0.35 per unit of risk. If you would invest 454.00 in Beijing Sanyuan Foods on October 24, 2024 and sell it today you would lose (42.00) from holding Beijing Sanyuan Foods or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Qinghaihuading Industrial |
Beijing Sanyuan and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Qinghaihuading Industrial
The main advantage of trading using opposite Beijing Sanyuan and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Beijing Sanyuan vs. Harvest Fund Management | Beijing Sanyuan vs. Hainan Airlines Co | Beijing Sanyuan vs. Guangzhou Tinci Materials | Beijing Sanyuan vs. Orinko Advanced Plastics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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