Correlation Between Beijing Kaiwen and Shanghai Action
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kaiwen Education and Shanghai Action Education, you can compare the effects of market volatilities on Beijing Kaiwen and Shanghai Action 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 Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Shanghai Action.
Diversification Opportunities for Beijing Kaiwen and Shanghai Action
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Shanghai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Shanghai Action go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Shanghai Action
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 1.21 times less return on investment than Shanghai Action. In addition to that, Beijing Kaiwen is 1.14 times more volatile than Shanghai Action Education. It trades about 0.02 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about 0.03 per unit of volatility. If you would invest 2,678 in Shanghai Action Education on August 30, 2024 and sell it today you would earn a total of 628.00 from holding Shanghai Action Education or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Shanghai Action Education
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Shanghai Action Education |
Beijing Kaiwen and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Shanghai Action
The main advantage of trading using opposite Beijing Kaiwen and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action's long position.| Beijing Kaiwen vs. PetroChina Co Ltd | Beijing Kaiwen vs. China State Construction | Beijing Kaiwen vs. China Mobile Limited | Beijing Kaiwen vs. Industrial and Commercial |
| Shanghai Action vs. Agricultural Bank of | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. Bank of China | Shanghai Action vs. China Construction 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |