Correlation Between Beijing Sanyuan and Shandong Publishing
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Shandong Publishing Media, you can compare the effects of market volatilities on Beijing Sanyuan and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Shandong Publishing.
Diversification Opportunities for Beijing Sanyuan and Shandong Publishing
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shandong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Shandong Publishing go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Shandong Publishing
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Shandong Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.46 times less risky than Shandong Publishing. The stock trades about -0.01 of its potential returns per unit of risk. The Shandong Publishing Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 614.00 in Shandong Publishing Media on October 18, 2024 and sell it today you would earn a total of 393.00 from holding Shandong Publishing Media or generate 64.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Shandong Publishing Media
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Shandong Publishing Media |
Beijing Sanyuan and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Shandong Publishing
The main advantage of trading using opposite Beijing Sanyuan and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Beijing Sanyuan vs. Henan Shuanghui Investment | Beijing Sanyuan vs. Harbin Hatou Investment | Beijing Sanyuan vs. Hubei Geoway Investment | Beijing Sanyuan vs. Epoxy Base Electronic |
| Shandong Publishing vs. Spring Airlines Co | Shandong Publishing vs. Guilin Seamild Foods | Shandong Publishing vs. HaiXin Foods Co | Shandong Publishing 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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