Correlation Between Beijing Kaiwen and Hubei Jumpcan
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By analyzing existing cross correlation between Beijing Kaiwen Education and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Beijing Kaiwen and Hubei Jumpcan 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 Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Hubei Jumpcan.
Diversification Opportunities for Beijing Kaiwen and Hubei Jumpcan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Hubei is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Hubei Jumpcan
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.87 times more return on investment than Hubei Jumpcan. However, Beijing Kaiwen is 1.87 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about 0.16 of its potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.06 per unit of risk. If you would invest 467.00 in Beijing Kaiwen Education on September 5, 2024 and sell it today you would earn a total of 65.00 from holding Beijing Kaiwen Education or generate 13.92% 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. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Hubei Jumpcan Pharma |
Beijing Kaiwen and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Hubei Jumpcan
The main advantage of trading using opposite Beijing Kaiwen and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
| Hubei Jumpcan vs. Lonkey Industrial Co | Hubei Jumpcan vs. Gem Year Industrial Co | Hubei Jumpcan vs. Longmaster Information Tech | Hubei Jumpcan vs. Dawning Information Industry |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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