Correlation Between Beijing Sanyuan and Bank of China
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Bank of China, you can compare the effects of market volatilities on Beijing Sanyuan and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Bank of China.
Diversification Opportunities for Beijing Sanyuan and Bank of China
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Bank is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Bank of China go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Bank of China
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 1.05 times less return on investment than Bank of China. In addition to that, Beijing Sanyuan is 1.62 times more volatile than Bank of China. It trades about 0.05 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 476.00 in Bank of China on October 22, 2024 and sell it today you would earn a total of 69.00 from holding Bank of China or generate 14.5% 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. Bank of China
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Bank of China |
Beijing Sanyuan and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Bank of China
The main advantage of trading using opposite Beijing Sanyuan and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Beijing Sanyuan vs. Threes Company Media | Beijing Sanyuan vs. Beijing Enlight Media | Beijing Sanyuan vs. Lotus Health Group | Beijing Sanyuan vs. Shanghai Yaoji Playing |
| Bank of China vs. Beijing Sanyuan Foods | Bank of China vs. Jiangsu Financial Leasing | Bank of China vs. Qilu Bank Co | Bank of China vs. Peoples Insurance 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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