Correlation Between Beijing Kaiwen and Guangdong Transtek
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By analyzing existing cross correlation between Beijing Kaiwen Education and Guangdong Transtek Medical, you can compare the effects of market volatilities on Beijing Kaiwen and Guangdong Transtek 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 Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Guangdong Transtek.
Diversification Opportunities for Beijing Kaiwen and Guangdong Transtek
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Guangdong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek 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 Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Guangdong Transtek go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Guangdong Transtek
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Guangdong Transtek. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Kaiwen Education is 1.36 times less risky than Guangdong Transtek. The stock trades about -0.09 of its potential returns per unit of risk. The Guangdong Transtek Medical is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,469 in Guangdong Transtek Medical on October 30, 2024 and sell it today you would lose (204.00) from holding Guangdong Transtek Medical or give up 13.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Guangdong Transtek Medical
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Guangdong Transtek |
Beijing Kaiwen and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Guangdong Transtek
The main advantage of trading using opposite Beijing Kaiwen and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek's long position.| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
| Guangdong Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek vs. China Construction Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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