Correlation Between Beijing Kaiwen and Shenzhen Fortune
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By analyzing existing cross correlation between Beijing Kaiwen Education and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Beijing Kaiwen and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kaiwen and Shenzhen Fortune.
Diversification Opportunities for Beijing Kaiwen and Shenzhen Fortune
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shenzhen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kaiwen Education and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Beijing Kaiwen i.e., Beijing Kaiwen and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Beijing Kaiwen and Shenzhen Fortune
Assuming the 90 days trading horizon Beijing Kaiwen is expected to generate 2.29 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Beijing Kaiwen Education is 1.48 times less risky than Shenzhen Fortune. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,415 in Shenzhen Fortune Trend on October 26, 2024 and sell it today you would earn a total of 8,658 from holding Shenzhen Fortune Trend or generate 116.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Beijing Kaiwen Education vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Beijing Kaiwen Education |
| Shenzhen Fortune Trend |
Beijing Kaiwen and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kaiwen and Shenzhen Fortune
The main advantage of trading using opposite Beijing Kaiwen and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kaiwen position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune'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 |
| Shenzhen Fortune vs. Jiangsu Phoenix Publishing | Shenzhen Fortune vs. Goodwill E Health | Shenzhen Fortune vs. Beijing Kaiwen Education | Shenzhen Fortune vs. Shandong Sinoglory Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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