Correlation Between Beijing Kaiwen and CITIC Securities
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By analyzing existing cross correlation between Beijing Kaiwen Education and CITIC Securities Co, you can compare the effects of market volatilities on Beijing Kaiwen and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and CITIC Securities.
Diversification Opportunities for Beijing Kaiwen and CITIC Securities
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and CITIC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and CITIC Securities go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and CITIC Securities
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.94 times more return on investment than CITIC Securities. However, Beijing Kaiwen is 1.94 times more volatile than CITIC Securities Co. It trades about 0.0 of its potential returns per unit of risk. CITIC Securities Co is currently generating about -0.07 per unit of risk. If you would invest 453.00 in Beijing Kaiwen Education on November 3, 2024 and sell it today you would lose (4.00) from holding Beijing Kaiwen Education or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. CITIC Securities Co
Performance |
| Timeline |
| Beijing Kaiwen Education |
| CITIC Securities |
Beijing Kaiwen and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and CITIC Securities
The main advantage of trading using opposite Beijing Kaiwen and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Beijing Kaiwen vs. Anhui Shiny Electronic | Beijing Kaiwen vs. Integrated Electronic Systems | Beijing Kaiwen vs. Epoxy Base Electronic | Beijing Kaiwen vs. Healthcare Co |
| CITIC Securities vs. Anhui Jinhe Industrial | CITIC Securities vs. Hengli Industrial Development | CITIC Securities vs. Xiamen Goldenhome Co | CITIC Securities vs. Bosera CMSK Industrial |
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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