Correlation Between Beijing Kaiwen and Anhui Huilong
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By analyzing existing cross correlation between Beijing Kaiwen Education and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Beijing Kaiwen and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Anhui Huilong.
Diversification Opportunities for Beijing Kaiwen and Anhui Huilong
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Anhui is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Anhui Huilong go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Anhui Huilong
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.26 times more return on investment than Anhui Huilong. However, Beijing Kaiwen is 1.26 times more volatile than Anhui Huilong Agricultural. It trades about 0.03 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about 0.03 per unit of risk. If you would invest 412.00 in Beijing Kaiwen Education on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Beijing Kaiwen Education or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Anhui Huilong Agricu |
Beijing Kaiwen and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Anhui Huilong
The main advantage of trading using opposite Beijing Kaiwen and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Beijing Kaiwen vs. Guangdong Jingyi Metal | Beijing Kaiwen vs. Shanghai Jinfeng Wine | Beijing Kaiwen vs. Shaanxi Construction Machinery | Beijing Kaiwen vs. Heilongjiang Agriculture Co |
| Anhui Huilong vs. Heilongjiang Publishing Media | Anhui Huilong vs. Lootom Telcovideo Network | Anhui Huilong vs. Northern United Publishing | Anhui Huilong 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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