Correlation Between Beijing Kaiwen and Changjiang Publishing
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By analyzing existing cross correlation between Beijing Kaiwen Education and Changjiang Publishing Media, you can compare the effects of market volatilities on Beijing Kaiwen and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Changjiang Publishing.
Diversification Opportunities for Beijing Kaiwen and Changjiang Publishing
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Changjiang is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Changjiang Publishing
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 2.4 times less return on investment than Changjiang Publishing. In addition to that, Beijing Kaiwen is 1.22 times more volatile than Changjiang Publishing Media. It trades about 0.02 of its total potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.05 per unit of volatility. If you would invest 563.00 in Changjiang Publishing Media on November 19, 2024 and sell it today you would earn a total of 333.00 from holding Changjiang Publishing Media or generate 59.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Changjiang Publishing Media
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Changjiang Publishing |
Beijing Kaiwen and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Changjiang Publishing
The main advantage of trading using opposite Beijing Kaiwen and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Beijing Kaiwen vs. Chongqing Brewery Co | Beijing Kaiwen vs. Western Metal Materials | Beijing Kaiwen vs. Rongcheer Industrial Technology | Beijing Kaiwen vs. Shenzhen Zqgame |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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