Correlation Between Beijing Kaiwen and China National
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By analyzing existing cross correlation between Beijing Kaiwen Education and China National Software, you can compare the effects of market volatilities on Beijing Kaiwen and China National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and China National.
Diversification Opportunities for Beijing Kaiwen and China National
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and China National Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China National Software 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China National Software has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and China National go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and China National
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.2 times more return on investment than China National. However, Beijing Kaiwen is 1.2 times more volatile than China National Software. It trades about 0.14 of its potential returns per unit of risk. China National Software is currently generating about -0.21 per unit of risk. If you would invest 514.00 in Beijing Kaiwen Education on September 15, 2024 and sell it today you would earn a total of 63.00 from holding Beijing Kaiwen Education or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. China National Software
Performance |
| Timeline |
| Beijing Kaiwen Education |
| China National Software |
Beijing Kaiwen and China National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and China National
The main advantage of trading using opposite Beijing Kaiwen and China National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, China National 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 National will offset losses from the drop in China National'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 |
| China National vs. Do Fluoride Chemicals Co | China National vs. Beijing Kaiwen Education | China National vs. Ningxia Younglight Chemicals | China National vs. Guangzhou Zhujiang Brewery |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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