Correlation Between Beijing Sanyuan and Juewei Food
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Juewei Food Co, you can compare the effects of market volatilities on Beijing Sanyuan and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Juewei Food.
Diversification Opportunities for Beijing Sanyuan and Juewei Food
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Juewei is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Juewei Food go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Juewei Food
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 2.21 times less return on investment than Juewei Food. But when comparing it to its historical volatility, Beijing Sanyuan Foods is 2.24 times less risky than Juewei Food. It trades about 0.12 of its potential returns per unit of risk. Juewei Food Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,913 in Juewei Food Co on September 5, 2024 and sell it today you would earn a total of 171.00 from holding Juewei Food Co or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Juewei Food Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Juewei Food |
Beijing Sanyuan and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Juewei Food
The main advantage of trading using opposite Beijing Sanyuan and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Beijing Sanyuan vs. Xian International Medical | Beijing Sanyuan vs. Xinjiang Zhongtai Chemical | Beijing Sanyuan vs. Xilong Chemical Co | Beijing Sanyuan vs. North Huajin Chemical |
| Juewei Food vs. Panda Dairy Corp | Juewei Food vs. Sichuan Teway Food | Juewei Food vs. Beijing Sanyuan Foods | Juewei Food vs. Anji Foodstuff Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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