Correlation Between Yingde Greatchem and Beijing Kaiwen
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Beijing Kaiwen Education, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Beijing Kaiwen.
Diversification Opportunities for Yingde Greatchem and Beijing Kaiwen
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Beijing Kaiwen
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.78 times more return on investment than Beijing Kaiwen. However, Yingde Greatchem Chemicals is 1.29 times less risky than Beijing Kaiwen. It trades about 0.04 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.04 per unit of risk. If you would invest 2,298 in Yingde Greatchem Chemicals on October 30, 2024 and sell it today you would earn a total of 27.00 from holding Yingde Greatchem Chemicals or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Yingde Greatchem Che |
| Beijing Kaiwen Education |
Yingde Greatchem and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Beijing Kaiwen
The main advantage of trading using opposite Yingde Greatchem and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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