Correlation Between HeBei Jinniu and Beijing Jiaman
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Beijing Jiaman Dress, you can compare the effects of market volatilities on HeBei Jinniu and Beijing Jiaman 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 HeBei Jinniu with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Beijing Jiaman.
Diversification Opportunities for HeBei Jinniu and Beijing Jiaman
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeBei and Beijing is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress and HeBei Jinniu 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 HeBei Jinniu Chemical are associated (or correlated) with Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of HeBei Jinniu i.e., HeBei Jinniu and Beijing Jiaman go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Beijing Jiaman
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 1.09 times more return on investment than Beijing Jiaman. However, HeBei Jinniu is 1.09 times more volatile than Beijing Jiaman Dress. It trades about 0.02 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.01 per unit of risk. If you would invest 514.00 in HeBei Jinniu Chemical on October 29, 2024 and sell it today you would earn a total of 25.00 from holding HeBei Jinniu Chemical or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Beijing Jiaman Dress
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Beijing Jiaman Dress |
HeBei Jinniu and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Beijing Jiaman
The main advantage of trading using opposite HeBei Jinniu and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman's long position.| HeBei Jinniu vs. HaiXin Foods Co | HeBei Jinniu vs. Gan Yuan Foods | HeBei Jinniu vs. Fujian Anjoy Foods | HeBei Jinniu vs. CICC Fund Management |
| Beijing Jiaman vs. Duzhe Publishing Media | Beijing Jiaman vs. Changjiang Publishing Media | Beijing Jiaman vs. Jinhui Liquor Co | Beijing Jiaman vs. Yunnan Jianzhijia Health Chain |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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