Correlation Between Beijing Sanyuan and Gem Year
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Sanyuan Foods and Gem Year Industrial Co, you can compare the effects of market volatilities on Beijing Sanyuan and Gem Year 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 Sanyuan with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Gem Year.
Diversification Opportunities for Beijing Sanyuan and Gem Year
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Gem is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Beijing Sanyuan 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 Sanyuan Foods are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Gem Year go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Gem Year
Assuming the 90 days trading horizon Beijing Sanyuan is expected to generate 1.45 times less return on investment than Gem Year. But when comparing it to its historical volatility, Beijing Sanyuan Foods is 1.21 times less risky than Gem Year. It trades about 0.18 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Gem Year Industrial Co on September 20, 2024 and sell it today you would earn a total of 148.00 from holding Gem Year Industrial Co or generate 48.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Sanyuan Foods vs. Gem Year Industrial Co
Performance |
Timeline |
Beijing Sanyuan Foods |
Gem Year Industrial |
Beijing Sanyuan and Gem Year Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Sanyuan and Gem Year
The main advantage of trading using opposite Beijing Sanyuan and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.Beijing Sanyuan vs. Dareway Software Co | Beijing Sanyuan vs. Changjiang Jinggong Steel | Beijing Sanyuan vs. Dongjiang Environmental Co | Beijing Sanyuan vs. Inspur Software Co |
Gem Year vs. Agricultural Bank of | Gem Year vs. Industrial and Commercial | Gem Year vs. Bank of China | Gem Year vs. PetroChina Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |