Correlation Between Beijing Kaiwen and Kingclean Electric
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By analyzing existing cross correlation between Beijing Kaiwen Education and Kingclean Electric Co, you can compare the effects of market volatilities on Beijing Kaiwen and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Kingclean Electric.
Diversification Opportunities for Beijing Kaiwen and Kingclean Electric
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Kingclean is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Kingclean Electric go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Kingclean Electric
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 2.86 times more return on investment than Kingclean Electric. However, Beijing Kaiwen is 2.86 times more volatile than Kingclean Electric Co. It trades about 0.06 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.22 per unit of risk. If you would invest 506.00 in Beijing Kaiwen Education on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Beijing Kaiwen Education or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Kingclean Electric Co
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Kingclean Electric |
Beijing Kaiwen and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Kingclean Electric
The main advantage of trading using opposite Beijing Kaiwen and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Beijing Kaiwen vs. Western Metal Materials | Beijing Kaiwen vs. China Minmetals Rare | Beijing Kaiwen vs. Air China Ltd | Beijing Kaiwen vs. China Eastern Airlines |
| Kingclean Electric vs. Shanghai Action Education | Kingclean Electric vs. Offshore Oil Engineering | Kingclean Electric vs. Union Semiconductor Co | Kingclean Electric vs. Beijing Kaiwen Education |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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