Correlation Between Beijing Kaiwen and Renxin New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kaiwen Education and Renxin New Material, you can compare the effects of market volatilities on Beijing Kaiwen and Renxin New 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Renxin New.
Diversification Opportunities for Beijing Kaiwen and Renxin New
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Renxin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Renxin New go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Renxin New
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.87 times more return on investment than Renxin New. However, Beijing Kaiwen is 1.87 times more volatile than Renxin New Material. It trades about 0.14 of its potential returns per unit of risk. Renxin New Material is currently generating about 0.11 per unit of risk. If you would invest 467.00 in Beijing Kaiwen Education on September 13, 2024 and sell it today you would earn a total of 102.00 from holding Beijing Kaiwen Education or generate 21.84% 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. Renxin New Material
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Renxin New Material |
Beijing Kaiwen and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Renxin New
The main advantage of trading using opposite Beijing Kaiwen and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's long position.| Beijing Kaiwen vs. Nanjing Putian Telecommunications | Beijing Kaiwen vs. Tianjin Realty Development | Beijing Kaiwen vs. Kangyue Technology Co | Beijing Kaiwen vs. Shenzhen Hifuture Electric |
| Renxin New vs. Jiujiang Shanshui Technology | Renxin New vs. Beijing Kaiwen Education | Renxin New vs. Time Publishing and | Renxin New vs. Shandong Publishing Media |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |