Correlation Between Beijing Yanjing and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Beijing Yanjing and Jiangsu Xinri 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 Yanjing with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Jiangsu Xinri.
Diversification Opportunities for Beijing Yanjing and Jiangsu Xinri
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Beijing Yanjing 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 Yanjing Brewery are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Jiangsu Xinri
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 1.44 times less return on investment than Jiangsu Xinri. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 1.09 times less risky than Jiangsu Xinri. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 978.00 in Jiangsu Xinri E Vehicle on September 12, 2024 and sell it today you would earn a total of 172.00 from holding Jiangsu Xinri E Vehicle or generate 17.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Yanjing Brewery vs. Jiangsu Xinri E Vehicle
Performance |
Timeline |
Beijing Yanjing Brewery |
Jiangsu Xinri E |
Beijing Yanjing and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Yanjing and Jiangsu Xinri
The main advantage of trading using opposite Beijing Yanjing and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.Beijing Yanjing vs. China Petroleum Chemical | Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China State Construction | Beijing Yanjing vs. China Railway Group |
Jiangsu Xinri vs. Lutian Machinery Co | Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Bank of China | Jiangsu Xinri vs. Gansu Jiu Steel |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |