Correlation Between Gansu Jiu and Beijing Kaiwen
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By analyzing existing cross correlation between Gansu Jiu Steel and Beijing Kaiwen Education, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Beijing Kaiwen.
Diversification Opportunities for Gansu Jiu and Beijing Kaiwen
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Beijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel 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 Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Gansu Jiu and Beijing Kaiwen
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.4 times less risky than Beijing Kaiwen. The stock trades about -0.25 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 471.00 in Beijing Kaiwen Education on October 23, 2024 and sell it today you would lose (24.00) from holding Beijing Kaiwen Education or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Gansu Jiu Steel |
| Beijing Kaiwen Education |
Gansu Jiu and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Beijing Kaiwen
The main advantage of trading using opposite Gansu Jiu and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. GRINM Semiconductor Materials | Gansu Jiu vs. TianJin 712 Communication | Gansu Jiu vs. Bank of Communications | Gansu Jiu vs. China Sports Industry |
| Beijing Kaiwen vs. Hainan Haiqi Transportation | Beijing Kaiwen vs. Hunan TV Broadcast | Beijing Kaiwen vs. Guizhou BroadcastingTV Info | Beijing Kaiwen vs. Dongfeng Automobile Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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