Correlation Between Beijing Sanyuan and Ningbo Tip
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Ningbo Tip Rubber, you can compare the effects of market volatilities on Beijing Sanyuan and Ningbo Tip 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 Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Ningbo Tip.
Diversification Opportunities for Beijing Sanyuan and Ningbo Tip
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Ningbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Ningbo Tip go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Ningbo Tip
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 1.04 times more return on investment than Ningbo Tip. However, Beijing Sanyuan is 1.04 times more volatile than Ningbo Tip Rubber. It trades about 0.07 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about -0.01 per unit of risk. If you would invest 446.00 in Beijing Sanyuan Foods on September 29, 2024 and sell it today you would earn a total of 17.00 from holding Beijing Sanyuan Foods or generate 3.81% 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. Ningbo Tip Rubber
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Ningbo Tip Rubber |
Beijing Sanyuan and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Ningbo Tip
The main advantage of trading using opposite Beijing Sanyuan and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Ningbo Tip 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 Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| Beijing Sanyuan vs. Ming Yang Smart | Beijing Sanyuan vs. 159681 | Beijing Sanyuan vs. 159005 | Beijing Sanyuan vs. Loctek Ergonomic Technology |
| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. Cinda Securities Co | Ningbo Tip vs. Piotech Inc A | Ningbo Tip vs. Dongxing Sec 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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