Correlation Between Beijing Kaiwen and Bank of Suzhou
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By analyzing existing cross correlation between Beijing Kaiwen Education and Bank of Suzhou, you can compare the effects of market volatilities on Beijing Kaiwen and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Bank of Suzhou.
Diversification Opportunities for Beijing Kaiwen and Bank of Suzhou
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Bank is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Bank of Suzhou
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 1.06 times less return on investment than Bank of Suzhou. In addition to that, Beijing Kaiwen is 2.24 times more volatile than Bank of Suzhou. It trades about 0.02 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.05 per unit of volatility. If you would invest 647.00 in Bank of Suzhou on October 16, 2024 and sell it today you would earn a total of 144.00 from holding Bank of Suzhou or generate 22.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Bank of Suzhou
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Bank of Suzhou |
Beijing Kaiwen and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Bank of Suzhou
The main advantage of trading using opposite Beijing Kaiwen and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Beijing Kaiwen vs. Hubei Xingfa Chemicals | Beijing Kaiwen vs. Shenzhen Noposion Agrochemicals | Beijing Kaiwen vs. Yingde Greatchem Chemicals | Beijing Kaiwen vs. Dymatic Chemicals |
| Bank of Suzhou vs. Beijing Kaiwen Education | Bank of Suzhou vs. China Publishing Media | Bank of Suzhou vs. Heilongjiang Publishing Media | Bank of Suzhou vs. Tangel Publishing |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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