Correlation Between Beijing Sanyuan and China Construction
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By analyzing existing cross correlation between Beijing Sanyuan Foods and China Construction Bank, you can compare the effects of market volatilities on Beijing Sanyuan and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and China Construction.
Diversification Opportunities for Beijing Sanyuan and China Construction
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and China Construction go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and China Construction
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the China Construction. In addition to that, Beijing Sanyuan is 1.25 times more volatile than China Construction Bank. It trades about 0.0 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.08 per unit of volatility. If you would invest 519.00 in China Construction Bank on September 13, 2024 and sell it today you would earn a total of 302.00 from holding China Construction Bank or generate 58.19% 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. China Construction Bank
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| China Construction Bank |
Beijing Sanyuan and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and China Construction
The main advantage of trading using opposite Beijing Sanyuan and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction'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 |
| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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