Correlation Between Beijing Kaiwen and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kaiwen Education and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Beijing Kaiwen and Shaanxi Meineng 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 Kaiwen with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Shaanxi Meineng.
Diversification Opportunities for Beijing Kaiwen and Shaanxi Meineng
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Shaanxi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Beijing Kaiwen 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 Kaiwen Education are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Shaanxi Meineng
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.08 times more return on investment than Shaanxi Meineng. However, Beijing Kaiwen is 1.08 times more volatile than Shaanxi Meineng Clean. It trades about 0.0 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.02 per unit of risk. If you would invest 512.00 in Beijing Kaiwen Education on October 14, 2024 and sell it today you would lose (84.00) from holding Beijing Kaiwen Education or give up 16.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Shaanxi Meineng Clean |
Beijing Kaiwen and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Shaanxi Meineng
The main advantage of trading using opposite Beijing Kaiwen and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Beijing Kaiwen vs. Xiamen Goldenhome Co | Beijing Kaiwen vs. Shanghai Shuixing Home | Beijing Kaiwen vs. AUPU Home Style | Beijing Kaiwen vs. Ningbo Homelink Eco iTech |
| Shaanxi Meineng vs. Kunwu Jiuding Investment | Shaanxi Meineng vs. Hunan Investment Group | Shaanxi Meineng vs. Changjiang Publishing Media | Shaanxi Meineng vs. Beijing Kaiwen Education |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |