Correlation Between Beijing Kaiwen and Sichuan Hebang
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By analyzing existing cross correlation between Beijing Kaiwen Education and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Beijing Kaiwen and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Sichuan Hebang.
Diversification Opportunities for Beijing Kaiwen and Sichuan Hebang
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Sichuan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Sichuan Hebang
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Sichuan Hebang. In addition to that, Beijing Kaiwen is 2.32 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.32 of its total potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.44 per unit of volatility. If you would invest 230.00 in Sichuan Hebang Biotechnology on October 17, 2024 and sell it today you would lose (35.00) from holding Sichuan Hebang Biotechnology or give up 15.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Sichuan Hebang Biote |
Beijing Kaiwen and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Sichuan Hebang
The main advantage of trading using opposite Beijing Kaiwen and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Beijing Kaiwen vs. JuneYao Dairy Co | Beijing Kaiwen vs. Giantec Semiconductor Corp | Beijing Kaiwen vs. Qingdao Foods Co | Beijing Kaiwen vs. Guilin Seamild Foods |
| Sichuan Hebang vs. Xiamen Jihong Package | Sichuan Hebang vs. Xiwang Foodstuffs Co | Sichuan Hebang vs. Jinlong Machinery Electronic | Sichuan Hebang vs. Anji Foodstuff 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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