Correlation Between Beijing Sanyuan and Fujian Oriental
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Fujian Oriental Silver, you can compare the effects of market volatilities on Beijing Sanyuan and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Fujian Oriental.
Diversification Opportunities for Beijing Sanyuan and Fujian Oriental
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Fujian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Fujian Oriental go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Fujian Oriental
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 3.6 times less return on investment than Fujian Oriental. But when comparing it to its historical volatility, Beijing Sanyuan Foods is 2.24 times less risky than Fujian Oriental. It trades about 0.01 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 740.00 in Fujian Oriental Silver on September 3, 2024 and sell it today you would lose (11.00) from holding Fujian Oriental Silver or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Fujian Oriental Silver
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Fujian Oriental Silver |
Beijing Sanyuan and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Fujian Oriental
The main advantage of trading using opposite Beijing Sanyuan and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Beijing Sanyuan vs. Anhui Jianghuai Automobile | Beijing Sanyuan vs. Sunwave Communications Co | Beijing Sanyuan vs. CICT Mobile Communication | Beijing Sanyuan vs. Guangdong Marubi Biotechnology |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China | Fujian Oriental vs. Agricultural Bank of |
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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