Correlation Between Beijing Tong and Sugi Holdings
Can any of the company-specific risk be diversified away by investing in both Beijing Tong and Sugi Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Beijing Tong and Sugi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Tong Ren and Sugi Holdings CoLtd, you can compare the effects of market volatilities on Beijing Tong and Sugi Holdings 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 Tong with a short position of Sugi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Tong and Sugi Holdings.
Diversification Opportunities for Beijing Tong and Sugi Holdings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Sugi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Tong Ren and Sugi Holdings CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugi Holdings CoLtd and Beijing Tong 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 Tong Ren are associated (or correlated) with Sugi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugi Holdings CoLtd has no effect on the direction of Beijing Tong i.e., Beijing Tong and Sugi Holdings go up and down completely randomly.
Pair Corralation between Beijing Tong and Sugi Holdings
Assuming the 90 days horizon Beijing Tong Ren is expected to under-perform the Sugi Holdings. In addition to that, Beijing Tong is 1.31 times more volatile than Sugi Holdings CoLtd. It trades about -0.05 of its total potential returns per unit of risk. Sugi Holdings CoLtd is currently generating about 0.39 per unit of volatility. If you would invest 1,500 in Sugi Holdings CoLtd on November 5, 2024 and sell it today you would earn a total of 170.00 from holding Sugi Holdings CoLtd or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Tong Ren vs. Sugi Holdings CoLtd
Performance |
| Timeline |
| Beijing Tong Ren |
| Sugi Holdings CoLtd |
Beijing Tong and Sugi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Tong and Sugi Holdings
The main advantage of trading using opposite Beijing Tong and Sugi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Tong position performs unexpectedly, Sugi Holdings 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 Sugi Holdings will offset losses from the drop in Sugi Holdings' long position.| Beijing Tong vs. Insurance Australia Group | Beijing Tong vs. RYU Apparel | Beijing Tong vs. ZURICH INSURANCE GROUP | Beijing Tong vs. United Insurance Holdings |
| Sugi Holdings vs. UNIVMUSIC GRPADR050 | Sugi Holdings vs. Discover Financial Services | Sugi Holdings vs. CullenFrost Bankers | Sugi Holdings vs. UNIVERSAL MUSIC GROUP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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