Correlation Between Goodwill E and Beijing Sanyuan
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By analyzing existing cross correlation between Goodwill E Health and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Goodwill E and Beijing Sanyuan 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 Goodwill E with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodwill E and Beijing Sanyuan.
Diversification Opportunities for Goodwill E and Beijing Sanyuan
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goodwill and Beijing is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Goodwill E Health and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods and Goodwill E 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 Goodwill E Health are associated (or correlated) with Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Goodwill E i.e., Goodwill E and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Goodwill E and Beijing Sanyuan
Assuming the 90 days trading horizon Goodwill E Health is expected to generate 2.05 times more return on investment than Beijing Sanyuan. However, Goodwill E is 2.05 times more volatile than Beijing Sanyuan Foods. It trades about 0.02 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.02 per unit of risk. If you would invest 2,370 in Goodwill E Health on November 5, 2024 and sell it today you would earn a total of 23.00 from holding Goodwill E Health or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodwill E Health vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Goodwill E Health |
| Beijing Sanyuan Foods |
Goodwill E and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodwill E and Beijing Sanyuan
The main advantage of trading using opposite Goodwill E and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodwill E position performs unexpectedly, Beijing Sanyuan 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 Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Goodwill E vs. Hainan Airlines Co | Goodwill E vs. Sichuan Fulin Transportation | Goodwill E vs. Vats Liquor Chain | Goodwill E vs. Jiangsu Jinling Sports |
| Beijing Sanyuan vs. China Longyuan Power | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. Guangxi Guiguan Electric | Beijing Sanyuan vs. Yantai North Andre |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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