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
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Sugi is 0.7. 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 is expected to generate 2.2 times less return on investment than Sugi Holdings. But when comparing it to its historical volatility, Beijing Tong Ren is 1.13 times less risky than Sugi Holdings. It trades about 0.07 of its potential returns per unit of risk. Sugi Holdings CoLtd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Sugi Holdings CoLtd on April 23, 2025 and sell it today you would earn a total of 280.00 from holding Sugi Holdings CoLtd or generate 15.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
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. Walgreens Boots Alliance | Beijing Tong vs. ALIBHLINFTECUNSPADR | Beijing Tong vs. Alibaba Health Information | Beijing Tong vs. Sugi Holdings CoLtd |
Sugi Holdings vs. Walgreens Boots Alliance | Sugi Holdings vs. ALIBHLINFTECUNSPADR | Sugi Holdings vs. Alibaba Health Information | Sugi Holdings vs. Beijing Tong Ren |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |