Correlation Between Beijing Kaiwen and Jiangsu Financial
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By analyzing existing cross correlation between Beijing Kaiwen Education and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Beijing Kaiwen and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Jiangsu Financial.
Diversification Opportunities for Beijing Kaiwen and Jiangsu Financial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Jiangsu is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Jiangsu Financial
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Jiangsu Financial. In addition to that, Beijing Kaiwen is 3.0 times more volatile than Jiangsu Financial Leasing. It trades about -0.1 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.06 per unit of volatility. If you would invest 514.00 in Jiangsu Financial Leasing on November 1, 2024 and sell it today you would earn a total of 14.00 from holding Jiangsu Financial Leasing or generate 2.72% 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. Jiangsu Financial Leasing
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Jiangsu Financial Leasing |
Beijing Kaiwen and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Jiangsu Financial
The main advantage of trading using opposite Beijing Kaiwen and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Beijing Kaiwen vs. Shaanxi Energy Investment | Beijing Kaiwen vs. Harson Trading China | Beijing Kaiwen vs. Chengdu Xingrong Investment | Beijing Kaiwen vs. Shandong Publishing Media |
| Jiangsu Financial vs. Guangdong Wens Foodstuff | Jiangsu Financial vs. Dazhong Transportation Group | Jiangsu Financial vs. Shaanxi Broadcast TV | Jiangsu Financial vs. Xiwang Foodstuffs 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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