Correlation Between Chinese Universe and Beijing Kaiwen
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By analyzing existing cross correlation between Chinese Universe Publishing and Beijing Kaiwen Education, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Beijing Kaiwen.
Diversification Opportunities for Chinese Universe and Beijing Kaiwen
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chinese and Beijing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Chinese Universe and Beijing Kaiwen
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.81 times less risky than Beijing Kaiwen. The stock trades about -0.29 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 541.00 in Beijing Kaiwen Education on August 28, 2024 and sell it today you would lose (45.00) from holding Beijing Kaiwen Education or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Chinese Universe Pub |
| Beijing Kaiwen Education |
Chinese Universe and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Beijing Kaiwen
The main advantage of trading using opposite Chinese Universe and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
| Beijing Kaiwen vs. Fujian Oriental Silver | Beijing Kaiwen vs. Fuzhou Rockchip Electronics | Beijing Kaiwen vs. Leyard Optoelectronic | Beijing Kaiwen vs. Puyang Huicheng Electronic |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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