Correlation Between Shenzhen Noposion and Beijing Kaiwen
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shenzhen Noposion and Beijing Kaiwen 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 Shenzhen Noposion with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Beijing Kaiwen.
Diversification Opportunities for Shenzhen Noposion and Beijing Kaiwen
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Beijing is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Beijing Kaiwen
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.76 times more return on investment than Beijing Kaiwen. However, Shenzhen Noposion Agrochemicals is 1.31 times less risky than Beijing Kaiwen. It trades about 0.16 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.06 per unit of risk. If you would invest 914.00 in Shenzhen Noposion Agrochemicals on October 17, 2024 and sell it today you would earn a total of 178.00 from holding Shenzhen Noposion Agrochemicals or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shenzhen Noposion |
| Beijing Kaiwen Education |
Shenzhen Noposion and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Beijing Kaiwen
The main advantage of trading using opposite Shenzhen Noposion and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Beijing Kaiwen 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 Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Shenzhen Noposion vs. Caihong Display Devices | Shenzhen Noposion vs. Fiberhome Telecommunication Technologies | Shenzhen Noposion vs. Success Electronics | Shenzhen Noposion vs. Aurora Optoelectronics Co |
| Beijing Kaiwen vs. Hubei Xingfa Chemicals | Beijing Kaiwen vs. Shenzhen Noposion Agrochemicals | Beijing Kaiwen vs. Yingde Greatchem Chemicals | Beijing Kaiwen vs. Dymatic Chemicals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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