Correlation Between Chongqing Brewery and Beijing Kaiwen
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By analyzing existing cross correlation between Chongqing Brewery Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Beijing Kaiwen.
Diversification Opportunities for Chongqing Brewery and Beijing Kaiwen
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co 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 Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Beijing Kaiwen
Assuming the 90 days trading horizon Chongqing Brewery is expected to generate 2.82 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, Chongqing Brewery Co is 1.93 times less risky than Beijing Kaiwen. It trades about 0.12 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 467.00 in Beijing Kaiwen Education on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Beijing Kaiwen Education or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Chongqing Brewery |
| Beijing Kaiwen Education |
Chongqing Brewery and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Beijing Kaiwen
The main advantage of trading using opposite Chongqing Brewery and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.| Chongqing Brewery vs. Beijing Kaiwen Education | Chongqing Brewery vs. Anhui Huaren Health | Chongqing Brewery vs. Hangzhou Coco Healthcare | Chongqing Brewery vs. Xinhua Winshare Publishing |
| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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