Correlation Between Shanghai Jinfeng and Beijing Venustech
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Beijing Venustech, you can compare the effects of market volatilities on Shanghai Jinfeng and Beijing Venustech 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 Jinfeng with a short position of Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Beijing Venustech.
Diversification Opportunities for Shanghai Jinfeng and Beijing Venustech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Beijing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech and Shanghai Jinfeng 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 Jinfeng Wine are associated (or correlated) with Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Beijing Venustech go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Beijing Venustech
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 1.28 times more return on investment than Beijing Venustech. However, Shanghai Jinfeng is 1.28 times more volatile than Beijing Venustech. It trades about 0.25 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.27 per unit of risk. If you would invest 559.00 in Shanghai Jinfeng Wine on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Shanghai Jinfeng Wine or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Beijing Venustech
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Beijing Venustech |
Shanghai Jinfeng and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Beijing Venustech
The main advantage of trading using opposite Shanghai Jinfeng and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Beijing Venustech 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 Venustech will offset losses from the drop in Beijing Venustech's long position.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| Beijing Venustech vs. Xiangyang Automobile Bearing | Beijing Venustech vs. ButOne Information Corp | Beijing Venustech vs. Haima Automobile Group | Beijing Venustech vs. Ningbo Fangzheng Automobile |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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