Correlation Between Beijing Kaiwen and Heilongjiang Publishing
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By analyzing existing cross correlation between Beijing Kaiwen Education and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Beijing Kaiwen and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Heilongjiang Publishing.
Diversification Opportunities for Beijing Kaiwen and Heilongjiang Publishing
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Heilongjiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Heilongjiang Publishing
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 2.75 times less return on investment than Heilongjiang Publishing. But when comparing it to its historical volatility, Beijing Kaiwen Education is 1.31 times less risky than Heilongjiang Publishing. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,041 in Heilongjiang Publishing Media on August 30, 2024 and sell it today you would earn a total of 648.00 from holding Heilongjiang Publishing Media or generate 62.25% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Heilongjiang Publishing |
Beijing Kaiwen and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Heilongjiang Publishing
The main advantage of trading using opposite Beijing Kaiwen and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing'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 |
| Heilongjiang Publishing vs. Industrial and Commercial | Heilongjiang Publishing vs. Agricultural Bank of | Heilongjiang Publishing vs. China Construction Bank | Heilongjiang Publishing vs. Bank of China |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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