Correlation Between Xiamen Bank and Beijing Yanjing
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By analyzing existing cross correlation between Xiamen Bank Co and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Beijing Yanjing.
Diversification Opportunities for Xiamen Bank and Beijing Yanjing
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Beijing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co 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 Xiamen Bank 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 Xiamen Bank Co 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 Xiamen Bank i.e., Xiamen Bank and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Xiamen Bank and Beijing Yanjing
Assuming the 90 days trading horizon Xiamen Bank Co is expected to under-perform the Beijing Yanjing. In addition to that, Xiamen Bank is 1.08 times more volatile than Beijing Yanjing Brewery. It trades about -0.13 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.22 per unit of volatility. If you would invest 1,082 in Beijing Yanjing Brewery on October 12, 2024 and sell it today you would earn a total of 74.00 from holding Beijing Yanjing Brewery or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Xiamen Bank |
| Beijing Yanjing Brewery |
Xiamen Bank and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Beijing Yanjing
The main advantage of trading using opposite Xiamen Bank and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. HUAQIN TECHNOLOGY LTD | Xiamen Bank vs. Smartgiant Technology Co | Xiamen Bank vs. Sharetronic Data Technology | Xiamen Bank vs. Montage Technology Co |
| Beijing Yanjing vs. Hua Xia Bank | Beijing Yanjing vs. Anhui Transport Consulting | Beijing Yanjing vs. Xiamen Bank Co | Beijing Yanjing vs. Agricultural Bank of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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