Correlation Between Vohringer Home and Beijing Yanjing
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By analyzing existing cross correlation between Vohringer Home Technology and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Vohringer Home 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 Vohringer Home with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vohringer Home and Beijing Yanjing.
Diversification Opportunities for Vohringer Home and Beijing Yanjing
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vohringer and Beijing is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vohringer Home Technology 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 Vohringer Home 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 Vohringer Home Technology 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 Vohringer Home i.e., Vohringer Home and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Vohringer Home and Beijing Yanjing
Assuming the 90 days trading horizon Vohringer Home Technology is expected to generate 1.76 times more return on investment than Beijing Yanjing. However, Vohringer Home is 1.76 times more volatile than Beijing Yanjing Brewery. It trades about 0.63 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about -0.17 per unit of risk. If you would invest 436.00 in Vohringer Home Technology on November 8, 2024 and sell it today you would earn a total of 134.00 from holding Vohringer Home Technology or generate 30.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vohringer Home Technology vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Vohringer Home Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Beijing Yanjing Brewery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Vohringer Home and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vohringer Home and Beijing Yanjing
The main advantage of trading using opposite Vohringer Home and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vohringer Home 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.The idea behind Vohringer Home Technology and Beijing Yanjing Brewery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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