Correlation Between Beijing Kaiwen and Northern United
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By analyzing existing cross correlation between Beijing Kaiwen Education and Northern United Publishing, you can compare the effects of market volatilities on Beijing Kaiwen and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Northern United.
Diversification Opportunities for Beijing Kaiwen and Northern United
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Northern is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Northern United go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Northern United
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 1.09 times less return on investment than Northern United. But when comparing it to its historical volatility, Beijing Kaiwen Education is 1.01 times less risky than Northern United. It trades about 0.02 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 593.00 in Northern United Publishing on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Northern United Publishing or generate 17.2% 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. Northern United Publishing
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Northern United Publ |
Beijing Kaiwen and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Northern United
The main advantage of trading using opposite Beijing Kaiwen and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Beijing Kaiwen vs. Kweichow Moutai Co | Beijing Kaiwen vs. NAURA Technology Group | Beijing Kaiwen vs. Zhejiang Orient Gene | Beijing Kaiwen vs. APT Medical |
| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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