Correlation Between Beijing Kaiwen and Zhongyin Babi
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By analyzing existing cross correlation between Beijing Kaiwen Education and Zhongyin Babi Food, you can compare the effects of market volatilities on Beijing Kaiwen and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Zhongyin Babi.
Diversification Opportunities for Beijing Kaiwen and Zhongyin Babi
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Zhongyin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Zhongyin Babi
Assuming the 90 days trading horizon Beijing Kaiwen Education is expected to under-perform the Zhongyin Babi. In addition to that, Beijing Kaiwen is 1.07 times more volatile than Zhongyin Babi Food. It trades about -0.09 of its total potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.06 per unit of volatility. If you would invest 1,726 in Zhongyin Babi Food on October 30, 2024 and sell it today you would earn a total of 101.00 from holding Zhongyin Babi Food or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Zhongyin Babi Food
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Zhongyin Babi Food |
Beijing Kaiwen and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Zhongyin Babi
The main advantage of trading using opposite Beijing Kaiwen and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
| Zhongyin Babi vs. Kweichow Moutai Co | Zhongyin Babi vs. Contemporary Amperex Technology | Zhongyin Babi vs. G bits Network Technology | Zhongyin Babi vs. Beijing Roborock 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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