Correlation Between Do Fluoride and Beijing Kaiwen
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Beijing Kaiwen.
Diversification Opportunities for Do Fluoride and Beijing Kaiwen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002407 and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co 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 Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Do Fluoride and Beijing Kaiwen
Assuming the 90 days trading horizon Do Fluoride is expected to generate 10.83 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, Do Fluoride Chemicals Co is 1.25 times less risky than Beijing Kaiwen. It trades about 0.0 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Beijing Kaiwen Education on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Beijing Kaiwen Education or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Beijing Kaiwen Education |
Do Fluoride and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Beijing Kaiwen
The main advantage of trading using opposite Do Fluoride and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.The idea behind Do Fluoride Chemicals Co and Beijing Kaiwen Education pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beijing Kaiwen vs. Cultural Investment Holdings | Beijing Kaiwen vs. Gome Telecom Equipment | Beijing Kaiwen vs. Bus Online Co | Beijing Kaiwen vs. Holitech Technology Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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