Correlation Between Industrial and Beijing Yanjing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Beijing Yanjing.
Diversification Opportunities for Industrial and Beijing Yanjing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Industrial and Beijing Yanjing
Assuming the 90 days trading horizon Industrial is expected to generate 1.11 times less return on investment than Beijing Yanjing. But when comparing it to its historical volatility, Industrial and Commercial is 1.42 times less risky than Beijing Yanjing. It trades about 0.09 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Beijing Yanjing Brewery on November 5, 2024 and sell it today you would earn a total of 265.00 from holding Beijing Yanjing Brewery or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Industrial and Commercial |
| Beijing Yanjing Brewery |
Industrial and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Beijing Yanjing
The main advantage of trading using opposite Industrial and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China World Trade | Industrial vs. Yili Chuanning Biotechnology | Industrial vs. Wuhan Hvsen Biotechnology | Industrial vs. Anhui Huilong Agricultural |
| Beijing Yanjing vs. Orinko Advanced Plastics | Beijing Yanjing vs. JCHX Mining Management | Beijing Yanjing vs. Liaoning Xinde New | Beijing Yanjing vs. Wuxi Double Elephant |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |