Correlation Between Beijing Kaiwen and Chengdu B
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By analyzing existing cross correlation between Beijing Kaiwen Education and Chengdu B ray Media, you can compare the effects of market volatilities on Beijing Kaiwen and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Chengdu B.
Diversification Opportunities for Beijing Kaiwen and Chengdu B
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Chengdu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Chengdu B go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Chengdu B
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.25 times more return on investment than Chengdu B. However, Beijing Kaiwen is 1.25 times more volatile than Chengdu B ray Media. It trades about 0.03 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.0 per unit of risk. If you would invest 474.00 in Beijing Kaiwen Education on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Beijing Kaiwen Education or generate 12.24% 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. Chengdu B ray Media
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Chengdu B ray |
Beijing Kaiwen and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Chengdu B
The main advantage of trading using opposite Beijing Kaiwen and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Aofu Environmental Technology | Chengdu B vs. GreenTech Environmental Co | Chengdu B vs. Cofoe Medical Technology | Chengdu B vs. Cowealth Medical China |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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