Correlation Between Shanghai Shibei and Beijing Yanjing
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Shanghai Shibei and Beijing Yanjing 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 Shanghai Shibei with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Beijing Yanjing.
Diversification Opportunities for Shanghai Shibei and Beijing Yanjing
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Beijing is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery and Shanghai Shibei 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 Shanghai Shibei Hi Tech are associated (or correlated) with Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Shanghai Shibei i.e., Shanghai Shibei and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Beijing Yanjing
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the Beijing Yanjing. In addition to that, Shanghai Shibei is 1.37 times more volatile than Beijing Yanjing Brewery. It trades about -0.26 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.16 per unit of volatility. If you would invest 1,120 in Beijing Yanjing Brewery on October 22, 2024 and sell it today you would earn a total of 58.00 from holding Beijing Yanjing Brewery or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Beijing Yanjing Brewery |
Shanghai Shibei and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Beijing Yanjing
The main advantage of trading using opposite Shanghai Shibei and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Shanghai Shibei vs. HanS Laser Tech | Shanghai Shibei vs. Kailong High Technology | Shanghai Shibei vs. Tianjin Ruixin Technology | Shanghai Shibei vs. Digiwin Software Co |
| Beijing Yanjing vs. Shanghai Shibei Hi Tech | Beijing Yanjing vs. AUPU Home Style | Beijing Yanjing vs. Kuang Chi Technologies | Beijing Yanjing vs. Hunan Mendale Hometextile |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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