Correlation Between Beijing Sanyuan and China Citic
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By analyzing existing cross correlation between Beijing Sanyuan Foods and China Citic Bank, you can compare the effects of market volatilities on Beijing Sanyuan and China Citic 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 Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and China Citic.
Diversification Opportunities for Beijing Sanyuan and China Citic
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and China is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic 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 Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and China Citic go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and China Citic
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the China Citic. In addition to that, Beijing Sanyuan is 1.71 times more volatile than China Citic Bank. It trades about -0.28 of its total potential returns per unit of risk. China Citic Bank is currently generating about -0.24 per unit of volatility. If you would invest 694.00 in China Citic Bank on October 28, 2024 and sell it today you would lose (41.00) from holding China Citic Bank or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. China Citic Bank
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| China Citic Bank |
Beijing Sanyuan and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and China Citic
The main advantage of trading using opposite Beijing Sanyuan and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, China Citic 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 Citic will offset losses from the drop in China Citic's long position.| Beijing Sanyuan vs. Hengdian Entertainment Co | Beijing Sanyuan vs. Lander Sports Development | Beijing Sanyuan vs. XinJiang GuoTong Pipeline | Beijing Sanyuan vs. China Publishing Media |
| China Citic vs. Hefei Metalforming Mach | China Citic vs. Ye Chiu Metal | China Citic vs. Eyebright Medical Technology | China Citic vs. Beijing Jiaman Dress |
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 CEOs Directory module to screen CEOs from public companies around the world.
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