Correlation Between Beijing Sanyuan and Guangxi Wuzhou
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Beijing Sanyuan and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Guangxi Wuzhou.
Diversification Opportunities for Beijing Sanyuan and Guangxi Wuzhou
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Guangxi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Guangxi Wuzhou
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Guangxi Wuzhou. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.42 times less risky than Guangxi Wuzhou. The stock trades about -0.01 of its potential returns per unit of risk. The Guangxi Wuzhou Communications is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Guangxi Wuzhou Communications on October 16, 2024 and sell it today you would earn a total of 85.00 from holding Guangxi Wuzhou Communications or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Guangxi Wuzhou Commu |
Beijing Sanyuan and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Guangxi Wuzhou
The main advantage of trading using opposite Beijing Sanyuan and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Beijing Sanyuan vs. Anhui Transport Consulting | Beijing Sanyuan vs. Puya Semiconductor Shanghai | Beijing Sanyuan vs. Chengdu Xinzhu RoadBridge | Beijing Sanyuan vs. Hunan TV Broadcast |
| Guangxi Wuzhou vs. Jonjee Hi tech Industrial | Guangxi Wuzhou vs. Youyou Foods Co | Guangxi Wuzhou vs. Guangzhou Haige Communications | Guangxi Wuzhou 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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