Correlation Between Tangshan Port and Beijing Yanjing
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By analyzing existing cross correlation between Tangshan Port Group and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Tangshan Port 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 Tangshan Port with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Port and Beijing Yanjing.
Diversification Opportunities for Tangshan Port and Beijing Yanjing
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tangshan and Beijing is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Port Group 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 Tangshan Port 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 Tangshan Port Group 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 Tangshan Port i.e., Tangshan Port and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Tangshan Port and Beijing Yanjing
Assuming the 90 days trading horizon Tangshan Port is expected to generate 1.8 times less return on investment than Beijing Yanjing. But when comparing it to its historical volatility, Tangshan Port Group is 1.03 times less risky than Beijing Yanjing. It trades about 0.04 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 944.00 in Beijing Yanjing Brewery on September 14, 2024 and sell it today you would earn a total of 174.00 from holding Beijing Yanjing Brewery or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangshan Port Group vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Tangshan Port Group |
| Beijing Yanjing Brewery |
Tangshan Port and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Port and Beijing Yanjing
The main advantage of trading using opposite Tangshan Port and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Port 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.| Tangshan Port vs. Beijing Yanjing Brewery | Tangshan Port vs. Linewell Software Co | Tangshan Port vs. Dhc Software Co | Tangshan Port vs. Northking Information Technology |
| Beijing Yanjing vs. Industrial and Commercial | Beijing Yanjing vs. Kweichow Moutai Co | Beijing Yanjing vs. Agricultural Bank of | Beijing Yanjing vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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