Correlation Between Beijing YanDong and GRG Banking
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and GRG Banking Equipment, you can compare the effects of market volatilities on Beijing YanDong and GRG Banking 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 YanDong with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and GRG Banking.
Diversification Opportunities for Beijing YanDong and GRG Banking
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and GRG is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Beijing YanDong 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 YanDong MicroElectronic are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and GRG Banking go up and down completely randomly.
Pair Corralation between Beijing YanDong and GRG Banking
Assuming the 90 days trading horizon Beijing YanDong is expected to generate 1.12 times less return on investment than GRG Banking. In addition to that, Beijing YanDong is 1.44 times more volatile than GRG Banking Equipment. It trades about 0.01 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 per unit of volatility. If you would invest 980.00 in GRG Banking Equipment on October 11, 2024 and sell it today you would earn a total of 95.00 from holding GRG Banking Equipment or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. GRG Banking Equipment
Performance |
| Timeline |
| Beijing YanDong Micr |
| GRG Banking Equipment |
Beijing YanDong and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and GRG Banking
The main advantage of trading using opposite Beijing YanDong and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Beijing YanDong vs. Ping An Insurance | Beijing YanDong vs. China Life Insurance | Beijing YanDong vs. Hubei Geoway Investment | Beijing YanDong vs. Penyao Environmental Protection |
| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking vs. CITIC Metal 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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