Correlation Between Anhui Xinhua and Beijing Yanjing
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By analyzing existing cross correlation between Anhui Xinhua Media and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Anhui Xinhua 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 Anhui Xinhua with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Beijing Yanjing.
Diversification Opportunities for Anhui Xinhua and Beijing Yanjing
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Beijing is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media 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 Anhui Xinhua 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 Anhui Xinhua Media 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 Anhui Xinhua i.e., Anhui Xinhua and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Beijing Yanjing
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Beijing Yanjing. In addition to that, Anhui Xinhua is 1.28 times more volatile than Beijing Yanjing Brewery. It trades about -0.23 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about -0.06 per unit of volatility. If you would invest 1,166 in Beijing Yanjing Brewery on October 28, 2024 and sell it today you would lose (23.00) from holding Beijing Yanjing Brewery or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Anhui Xinhua Media |
| Beijing Yanjing Brewery |
Anhui Xinhua and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Beijing Yanjing
The main advantage of trading using opposite Anhui Xinhua and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua 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.| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua vs. Ping An Insurance |
| Beijing Yanjing vs. Agricultural Bank of | Beijing Yanjing vs. Industrial and Commercial | Beijing Yanjing vs. Bank of China | Beijing Yanjing vs. China Construction Bank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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