Correlation Between Namchow Food and Beijing Yanjing
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By analyzing existing cross correlation between Namchow Food Group and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Namchow Food and Beijing Yanjing 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 Namchow Food with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Beijing Yanjing.
Diversification Opportunities for Namchow Food and Beijing Yanjing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Namchow and Beijing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery and Namchow Food 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 Namchow Food Group are associated (or correlated) with Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Namchow Food i.e., Namchow Food and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Namchow Food and Beijing Yanjing
Assuming the 90 days trading horizon Namchow Food Group is expected to under-perform the Beijing Yanjing. But the stock apears to be less risky and, when comparing its historical volatility, Namchow Food Group is 1.05 times less risky than Beijing Yanjing. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Yanjing Brewery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,037 in Beijing Yanjing Brewery on September 19, 2024 and sell it today you would earn a total of 80.00 from holding Beijing Yanjing Brewery or generate 7.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Namchow Food Group vs. Beijing Yanjing Brewery
Performance |
Timeline |
Namchow Food Group |
Beijing Yanjing Brewery |
Namchow Food and Beijing Yanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Namchow Food and Beijing Yanjing
The main advantage of trading using opposite Namchow Food and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Beijing Yanjing 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 Yanjing will offset losses from the drop in Beijing Yanjing's long position.Namchow Food vs. Nanjing Putian Telecommunications | Namchow Food vs. Tianjin Realty Development | Namchow Food vs. Kangyue Technology Co | Namchow Food vs. Shenzhen Hifuture Electric |
Beijing Yanjing vs. Industrial and Commercial | Beijing Yanjing vs. Kweichow Moutai Co | Beijing Yanjing vs. Agricultural Bank of | Beijing Yanjing vs. China Mobile Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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