Correlation Between Beijing Kaiwen and China Sports
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By analyzing existing cross correlation between Beijing Kaiwen Education and China Sports Industry, you can compare the effects of market volatilities on Beijing Kaiwen and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and China Sports.
Diversification Opportunities for Beijing Kaiwen and China Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and China Sports go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and China Sports
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.41 times more return on investment than China Sports. However, Beijing Kaiwen is 1.41 times more volatile than China Sports Industry. It trades about 0.02 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.01 per unit of risk. If you would invest 472.00 in Beijing Kaiwen Education on August 30, 2024 and sell it today you would earn a total of 46.00 from holding Beijing Kaiwen Education or generate 9.75% 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. China Sports Industry
Performance |
| Timeline |
| Beijing Kaiwen Education |
| China Sports Industry |
Beijing Kaiwen and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and China Sports
The main advantage of trading using opposite Beijing Kaiwen and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Beijing Kaiwen vs. PetroChina Co Ltd | Beijing Kaiwen vs. China State Construction | Beijing Kaiwen vs. China Mobile Limited | Beijing Kaiwen vs. Industrial and Commercial |
| China Sports vs. Cambricon Technologies Corp | China Sports vs. Empyrean Technology Co | China Sports vs. Kuang Chi Technologies | China Sports vs. Gansu Jiu Steel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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