Correlation Between Beijing Kaiwen and Bank of China
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By analyzing existing cross correlation between Beijing Kaiwen Education and Bank of China, you can compare the effects of market volatilities on Beijing Kaiwen and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Bank of China.
Diversification Opportunities for Beijing Kaiwen and Bank of China
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Bank is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Bank of China go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Bank of China
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Bank of China. In addition to that, Beijing Kaiwen is 4.61 times more volatile than Bank of China. It trades about -0.07 of its total potential returns per unit of risk. Bank of China is currently generating about 0.11 per unit of volatility. If you would invest 488.00 in Bank of China on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Bank of China or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Bank of China
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Bank of China |
Beijing Kaiwen and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Bank of China
The main advantage of trading using opposite Beijing Kaiwen and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Beijing Kaiwen vs. Fujian Oriental Silver | Beijing Kaiwen vs. Fuzhou Rockchip Electronics | Beijing Kaiwen vs. Leyard Optoelectronic | Beijing Kaiwen vs. Puyang Huicheng Electronic |
| Bank of China vs. Zhengzhou Qianweiyangchu Food | Bank of China vs. Guangdong Advertising Co | Bank of China vs. Linewell Software Co | Bank of China vs. Juewei Food 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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