Correlation Between Lander Sports and Beijing Yanjing
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By analyzing existing cross correlation between Lander Sports Development and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Lander Sports 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 Lander Sports with a short position of Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Beijing Yanjing.
Diversification Opportunities for Lander Sports and Beijing Yanjing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lander and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development 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 Lander Sports 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 Lander Sports Development 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 Lander Sports i.e., Lander Sports and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Lander Sports and Beijing Yanjing
Assuming the 90 days trading horizon Lander Sports Development is expected to generate 1.98 times more return on investment than Beijing Yanjing. However, Lander Sports is 1.98 times more volatile than Beijing Yanjing Brewery. It trades about 0.19 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.15 per unit of risk. If you would invest 231.00 in Lander Sports Development on September 23, 2024 and sell it today you would earn a total of 144.00 from holding Lander Sports Development or generate 62.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lander Sports Development vs. Beijing Yanjing Brewery
Performance |
Timeline |
Lander Sports Development |
Beijing Yanjing Brewery |
Lander Sports and Beijing Yanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lander Sports and Beijing Yanjing
The main advantage of trading using opposite Lander Sports and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports 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.Lander Sports vs. PetroChina Co Ltd | Lander Sports vs. China Mobile Limited | Lander Sports vs. CNOOC Limited | Lander Sports vs. Ping An Insurance |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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