Correlation Between Shenzhen Bioeasy and Beijing Kaiwen
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Beijing Kaiwen.
Diversification Opportunities for Shenzhen Bioeasy and Beijing Kaiwen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Beijing Kaiwen
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the Beijing Kaiwen. In addition to that, Shenzhen Bioeasy is 1.06 times more volatile than Beijing Kaiwen Education. It trades about -0.18 of its total potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.06 per unit of volatility. If you would invest 471.00 in Beijing Kaiwen Education on October 22, 2024 and sell it today you would lose (18.00) from holding Beijing Kaiwen Education or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Beijing Kaiwen Education |
Shenzhen Bioeasy and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Beijing Kaiwen
The main advantage of trading using opposite Shenzhen Bioeasy and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. Shenwu Energy Saving | Shenzhen Bioeasy vs. Guosheng Financial Holding | Shenzhen Bioeasy vs. Pengxin International Mining | Shenzhen Bioeasy vs. Agricultural Bank of |
| Beijing Kaiwen vs. Beijing Kingsoft Office | Beijing Kaiwen vs. Dazhong Transportation Group | Beijing Kaiwen vs. Sportsoul Co Ltd | Beijing Kaiwen vs. Shanghai Action Education |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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