Correlation Between Beijing Sanyuan and Industrial
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Industrial and Commercial, you can compare the effects of market volatilities on Beijing Sanyuan and 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Industrial.
Diversification Opportunities for Beijing Sanyuan and Industrial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Industrial is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Industrial go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Industrial
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 1.64 times more return on investment than Industrial. However, Beijing Sanyuan is 1.64 times more volatile than Industrial and Commercial. It trades about 0.26 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.24 per unit of risk. If you would invest 444.00 in Beijing Sanyuan Foods on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Beijing Sanyuan Foods or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Industrial and Commercial
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Industrial and Commercial |
Beijing Sanyuan and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Industrial
The main advantage of trading using opposite Beijing Sanyuan and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, 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 Industrial will offset losses from the drop in Industrial's long position.| Beijing Sanyuan vs. Nanjing Putian Telecommunications | Beijing Sanyuan vs. Tianjin Realty Development | Beijing Sanyuan vs. Kangyue Technology Co | Beijing Sanyuan vs. Shenzhen Hifuture Electric |
| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining Group |
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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