Correlation Between Beijing Kaiwen and Chinese Universe
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By analyzing existing cross correlation between Beijing Kaiwen Education and Chinese Universe Publishing, you can compare the effects of market volatilities on Beijing Kaiwen and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Chinese Universe.
Diversification Opportunities for Beijing Kaiwen and Chinese Universe
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Chinese is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Chinese Universe go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Chinese Universe
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.81 times more return on investment than Chinese Universe. However, Beijing Kaiwen is 1.81 times more volatile than Chinese Universe Publishing. It trades about -0.07 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.29 per unit of risk. If you would invest 541.00 in Beijing Kaiwen Education on August 28, 2024 and sell it today you would lose (45.00) from holding Beijing Kaiwen Education or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Chinese Universe Publishing
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Chinese Universe Pub |
Beijing Kaiwen and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Chinese Universe
The main advantage of trading using opposite Beijing Kaiwen and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Beijing Kaiwen vs. Fujian Oriental Silver | Beijing Kaiwen vs. Fuzhou Rockchip Electronics | Beijing Kaiwen vs. Leyard Optoelectronic | Beijing Kaiwen vs. Puyang Huicheng Electronic |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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