Correlation Between Beijing Kaiwen and Do Fluoride
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By analyzing existing cross correlation between Beijing Kaiwen Education and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Beijing Kaiwen and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Do Fluoride.
Diversification Opportunities for Beijing Kaiwen and Do Fluoride
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and 002407 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Do Fluoride go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Do Fluoride
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.25 times more return on investment than Do Fluoride. However, Beijing Kaiwen is 1.25 times more volatile than Do Fluoride Chemicals Co. It trades about 0.03 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.0 per unit of risk. 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 |
Beijing Kaiwen Education vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Do Fluoride Chemicals |
Beijing Kaiwen and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Do Fluoride
The main advantage of trading using opposite Beijing Kaiwen and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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