Correlation Between Beijing Wantai and Jiangsu Yanghe
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By analyzing existing cross correlation between Beijing Wantai Biological and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Beijing Wantai and Jiangsu Yanghe 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 Beijing Wantai with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Jiangsu Yanghe.
Diversification Opportunities for Beijing Wantai and Jiangsu Yanghe
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jiangsu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Beijing Wantai and Jiangsu Yanghe
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to generate 1.22 times more return on investment than Jiangsu Yanghe. However, Beijing Wantai is 1.22 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.04 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.09 per unit of risk. If you would invest 7,167 in Beijing Wantai Biological on November 6, 2024 and sell it today you would lose (358.00) from holding Beijing Wantai Biological or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Beijing Wantai Biological |
| Jiangsu Yanghe Brewery |
Beijing Wantai and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Jiangsu Yanghe
The main advantage of trading using opposite Beijing Wantai and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Beijing Wantai vs. Smartgiant Technology Co | Beijing Wantai vs. Anhui Transport Consulting | Beijing Wantai vs. Tianjin Ruixin Technology | Beijing Wantai vs. ROPEOK Technology Group |
| Jiangsu Yanghe vs. Guangdong Ellington Electronics | Jiangsu Yanghe vs. Weihai Honglin Electronic | Jiangsu Yanghe vs. Beijing YanDong MicroElectronic | Jiangsu Yanghe vs. Xinya Electronic Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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