Correlation Between Beijing Sanyuan and Beijing Kaiwen
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Beijing Kaiwen Education, you can compare the effects of market volatilities on Beijing Sanyuan 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 Beijing Sanyuan with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Beijing Kaiwen.
Diversification Opportunities for Beijing Sanyuan and Beijing Kaiwen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods 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 Beijing Sanyuan 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 Beijing Sanyuan Foods 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 Beijing Sanyuan i.e., Beijing Sanyuan and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Beijing Kaiwen
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.81 times less risky than Beijing Kaiwen. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 517.00 in Beijing Kaiwen Education on November 5, 2024 and sell it today you would lose (68.00) from holding Beijing Kaiwen Education or give up 13.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Beijing Kaiwen Education |
Beijing Sanyuan and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Beijing Kaiwen
The main advantage of trading using opposite Beijing Sanyuan and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan 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.| Beijing Sanyuan vs. China Longyuan Power | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. Guangxi Guiguan Electric | Beijing Sanyuan vs. Yantai North Andre |
| Beijing Kaiwen vs. Industrial Bank Co | Beijing Kaiwen vs. China Sports Industry | Beijing Kaiwen vs. Jiangsu Jinling Sports | Beijing Kaiwen vs. Anhui Huaheng Biotechnology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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