Correlation Between Beijing Sanyuan and Changshu Tongrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Sanyuan Foods and Changshu Tongrun Auto, you can compare the effects of market volatilities on Beijing Sanyuan and Changshu Tongrun 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 Changshu Tongrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Changshu Tongrun.
Diversification Opportunities for Beijing Sanyuan and Changshu Tongrun
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Changshu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Changshu Tongrun Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tongrun Auto 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 Changshu Tongrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tongrun Auto has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Changshu Tongrun go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Changshu Tongrun
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Changshu Tongrun. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.54 times less risky than Changshu Tongrun. The stock trades about -0.02 of its potential returns per unit of risk. The Changshu Tongrun Auto is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,637 in Changshu Tongrun Auto on August 29, 2024 and sell it today you would earn a total of 96.00 from holding Changshu Tongrun Auto or generate 5.86% 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. Changshu Tongrun Auto
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Changshu Tongrun Auto |
Beijing Sanyuan and Changshu Tongrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Changshu Tongrun
The main advantage of trading using opposite Beijing Sanyuan and Changshu Tongrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Changshu Tongrun 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 Changshu Tongrun will offset losses from the drop in Changshu Tongrun's long position.| Beijing Sanyuan vs. Heilongjiang Transport Development | Beijing Sanyuan vs. Hainan Haiqi Transportation | Beijing Sanyuan vs. Advanced Technology Materials | Beijing Sanyuan vs. GRIPM Advanced Materials |
| Changshu Tongrun vs. Changshu Tianyin Electromechan | Changshu Tongrun vs. Changshu Ruite Electric | Changshu Tongrun vs. Changshu Automotive Trim | Changshu Tongrun vs. Zhejiang Zanyu Technology |
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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |