Correlation Between Hangzhou Pinming and Beijing Yanjing
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By analyzing existing cross correlation between Hangzhou Pinming Software and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Hangzhou Pinming 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 Hangzhou Pinming with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Beijing Yanjing.
Diversification Opportunities for Hangzhou Pinming and Beijing Yanjing
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hangzhou and Beijing is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software 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 Hangzhou Pinming 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 Hangzhou Pinming Software 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 Hangzhou Pinming i.e., Hangzhou Pinming and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Beijing Yanjing
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to under-perform the Beijing Yanjing. In addition to that, Hangzhou Pinming is 2.1 times more volatile than Beijing Yanjing Brewery. It trades about -0.45 of its total potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.05 per unit of volatility. If you would invest 1,113 in Beijing Yanjing Brewery on October 16, 2024 and sell it today you would earn a total of 13.00 from holding Beijing Yanjing Brewery or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Beijing Yanjing Brewery |
Hangzhou Pinming and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Beijing Yanjing
The main advantage of trading using opposite Hangzhou Pinming and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming 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.| Hangzhou Pinming vs. Beijing Yanjing Brewery | Hangzhou Pinming vs. Vats Liquor Chain | Hangzhou Pinming vs. Tonghua Grape Wine | Hangzhou Pinming vs. Sportsoul Co Ltd |
| Beijing Yanjing vs. Huaxia Fund Management | Beijing Yanjing vs. Innovative Medical Management | Beijing Yanjing vs. Jiaozuo Wanfang Aluminum | Beijing Yanjing vs. Hainan Airlines 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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