Correlation Between Beijing Kaiwen and Shanghai Ziyan
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By analyzing existing cross correlation between Beijing Kaiwen Education and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Beijing Kaiwen and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Shanghai Ziyan.
Diversification Opportunities for Beijing Kaiwen and Shanghai Ziyan
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Shanghai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Shanghai Ziyan
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 0.65 times more return on investment than Shanghai Ziyan. However, Beijing Kaiwen Education is 1.53 times less risky than Shanghai Ziyan. It trades about 0.0 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.12 per unit of risk. If you would invest 449.00 in Beijing Kaiwen Education on October 26, 2024 and sell it today you would lose (2.00) from holding Beijing Kaiwen Education or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Shanghai Ziyan Foods |
Beijing Kaiwen and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Shanghai Ziyan
The main advantage of trading using opposite Beijing Kaiwen and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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