Correlation Between Beijing Kaiwen and China Merchants
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By analyzing existing cross correlation between Beijing Kaiwen Education and China Merchants Shekou, you can compare the effects of market volatilities on Beijing Kaiwen and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and China Merchants.
Diversification Opportunities for Beijing Kaiwen and China Merchants
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and China Merchants go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and China Merchants
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.57 times more return on investment than China Merchants. However, Beijing Kaiwen is 1.57 times more volatile than China Merchants Shekou. It trades about 0.11 of its potential returns per unit of risk. China Merchants Shekou is currently generating about 0.05 per unit of risk. If you would invest 467.00 in Beijing Kaiwen Education on September 5, 2024 and sell it today you would earn a total of 40.00 from holding Beijing Kaiwen Education or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. China Merchants Shekou
Performance |
| Timeline |
| Beijing Kaiwen Education |
| China Merchants Shekou |
Beijing Kaiwen and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and China Merchants
The main advantage of trading using opposite Beijing Kaiwen and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
| China Merchants vs. Shanghai CEO Environmental | China Merchants vs. Dongfeng Automobile Co | China Merchants vs. Huaxia Fund Management | China Merchants 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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