Correlation Between Beijing Kaiwen and Jinhui Liquor
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By analyzing existing cross correlation between Beijing Kaiwen Education and Jinhui Liquor Co, you can compare the effects of market volatilities on Beijing Kaiwen and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Jinhui Liquor.
Diversification Opportunities for Beijing Kaiwen and Jinhui Liquor
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jinhui is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Jinhui Liquor
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Jinhui Liquor. In addition to that, Beijing Kaiwen is 2.2 times more volatile than Jinhui Liquor Co. It trades about -0.06 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.12 per unit of volatility. If you would invest 2,042 in Jinhui Liquor Co on October 25, 2024 and sell it today you would lose (171.00) from holding Jinhui Liquor Co or give up 8.37% 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. Jinhui Liquor Co
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Jinhui Liquor |
Beijing Kaiwen and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Jinhui Liquor
The main advantage of trading using opposite Beijing Kaiwen and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Beijing Kaiwen vs. Kweichow Moutai Co | Beijing Kaiwen vs. Contemporary Amperex Technology | Beijing Kaiwen vs. Beijing Roborock Technology | Beijing Kaiwen vs. BYD Co Ltd |
| Jinhui Liquor vs. Agricultural Bank of | Jinhui Liquor vs. Postal Savings Bank | Jinhui Liquor vs. Bank of Communications | Jinhui Liquor vs. China Merchants Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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