Correlation Between China Sports and Beijing Kaiwen
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and Beijing Kaiwen Education, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Beijing Kaiwen.
Diversification Opportunities for China Sports and Beijing Kaiwen
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry 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 China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between China Sports and Beijing Kaiwen
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.46 times more return on investment than Beijing Kaiwen. However, China Sports Industry is 2.19 times less risky than Beijing Kaiwen. It trades about 0.02 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 791.00 in China Sports Industry on August 26, 2024 and sell it today you would earn a total of 3.00 from holding China Sports Industry or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Beijing Kaiwen Education
Performance |
| Timeline |
| China Sports Industry |
| Beijing Kaiwen Education |
China Sports and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Beijing Kaiwen
The main advantage of trading using opposite China Sports and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
| Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. China Construction Bank | Beijing Kaiwen vs. Bank of China |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |