Correlation Between Beijing Kaiwen and Shuhua Sports
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By analyzing existing cross correlation between Beijing Kaiwen Education and Shuhua Sports Co, you can compare the effects of market volatilities on Beijing Kaiwen and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Shuhua Sports.
Diversification Opportunities for Beijing Kaiwen and Shuhua Sports
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Shuhua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Shuhua Sports go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Shuhua Sports
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to generate 1.31 times more return on investment than Shuhua Sports. However, Beijing Kaiwen is 1.31 times more volatile than Shuhua Sports Co. It trades about 0.03 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.01 per unit of risk. If you would invest 474.00 in Beijing Kaiwen Education on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Beijing Kaiwen Education or generate 12.24% 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. Shuhua Sports Co
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Shuhua Sports |
Beijing Kaiwen and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Shuhua Sports
The main advantage of trading using opposite Beijing Kaiwen and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
| Shuhua Sports vs. BeiGene | Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Beijing Roborock Technology | Shuhua Sports vs. G bits Network 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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