Correlation Between Beijing YanDong and China Shenhua
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and China Shenhua Energy, you can compare the effects of market volatilities on Beijing YanDong and China Shenhua 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 China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and China Shenhua.
Diversification Opportunities for Beijing YanDong and China Shenhua
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and China is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy 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 China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Beijing YanDong i.e., Beijing YanDong and China Shenhua go up and down completely randomly.
Pair Corralation between Beijing YanDong and China Shenhua
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to generate 1.8 times more return on investment than China Shenhua. However, Beijing YanDong is 1.8 times more volatile than China Shenhua Energy. It trades about 0.02 of its potential returns per unit of risk. China Shenhua Energy is currently generating about -0.19 per unit of risk. If you would invest 1,895 in Beijing YanDong MicroElectronic on November 4, 2024 and sell it today you would earn a total of 8.00 from holding Beijing YanDong MicroElectronic or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. China Shenhua Energy
Performance |
| Timeline |
| Beijing YanDong Micr |
| China Shenhua Energy |
Beijing YanDong and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and China Shenhua
The main advantage of trading using opposite Beijing YanDong and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.| Beijing YanDong vs. Longjian Road Bridge | Beijing YanDong vs. Sichuan Fulin Transportation | Beijing YanDong vs. Xiandai Investment Co | Beijing YanDong vs. Harbin Hatou Investment |
| China Shenhua vs. Threes Company Media | China Shenhua vs. Spring Airlines Co | China Shenhua vs. Changjiang Publishing Media | China Shenhua vs. Beijing Yanjing Brewery |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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