Correlation Between Puyang Huicheng and Beijing Kaiwen
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By analyzing existing cross correlation between Puyang Huicheng Electronic and Beijing Kaiwen Education, you can compare the effects of market volatilities on Puyang Huicheng and Beijing Kaiwen 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 Puyang Huicheng with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and Beijing Kaiwen.
Diversification Opportunities for Puyang Huicheng and Beijing Kaiwen
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Puyang and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education and Puyang Huicheng 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 Puyang Huicheng Electronic are associated (or correlated) with Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Puyang Huicheng i.e., Puyang Huicheng and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Puyang Huicheng and Beijing Kaiwen
Assuming the 90 days trading horizon Puyang Huicheng Electronic is expected to generate 0.94 times more return on investment than Beijing Kaiwen. However, Puyang Huicheng Electronic is 1.06 times less risky than Beijing Kaiwen. It trades about 0.09 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.05 per unit of risk. If you would invest 1,405 in Puyang Huicheng Electronic on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Puyang Huicheng Electronic or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Puyang Huicheng Elec |
| Beijing Kaiwen Education |
Puyang Huicheng and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and Beijing Kaiwen
The main advantage of trading using opposite Puyang Huicheng and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Puyang Huicheng vs. Anji Foodstuff Co | Puyang Huicheng vs. Sichuan Teway Food | Puyang Huicheng vs. Shanghai Ziyan Foods | Puyang Huicheng vs. North Huajin Chemical |
| Beijing Kaiwen vs. Fujian Oriental Silver | Beijing Kaiwen vs. Fuzhou Rockchip Electronics | Beijing Kaiwen vs. Leyard Optoelectronic | Beijing Kaiwen vs. Puyang Huicheng Electronic |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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