Correlation Between Beijing Sanyuan and Gemdale Corp
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Gemdale Corp, you can compare the effects of market volatilities on Beijing Sanyuan and Gemdale Corp 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 Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Gemdale Corp.
Diversification Opportunities for Beijing Sanyuan and Gemdale Corp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Gemdale is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp 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 Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Gemdale Corp go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Gemdale Corp
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 1.29 times less return on investment than Gemdale Corp. But when comparing it to its historical volatility, Beijing Sanyuan Foods is 1.43 times less risky than Gemdale Corp. It trades about 0.09 of its potential returns per unit of risk. Gemdale Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Gemdale Corp on October 18, 2024 and sell it today you would earn a total of 77.00 from holding Gemdale Corp or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Gemdale Corp
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Gemdale Corp |
Beijing Sanyuan and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Gemdale Corp
The main advantage of trading using opposite Beijing Sanyuan and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.| Beijing Sanyuan vs. Marssenger Kitchenware Co | Beijing Sanyuan vs. Shenzhen Noposion Agrochemicals | Beijing Sanyuan vs. Do Fluoride Chemicals Co | Beijing Sanyuan vs. Vats Liquor Chain |
| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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