Correlation Between Fujian Oriental and Beijing Kaiwen
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By analyzing existing cross correlation between Fujian Oriental Silver and Beijing Kaiwen Education, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Beijing Kaiwen.
Diversification Opportunities for Fujian Oriental and Beijing Kaiwen
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Fujian Oriental and Beijing Kaiwen
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.02 times more return on investment than Beijing Kaiwen. However, Fujian Oriental is 1.02 times more volatile than Beijing Kaiwen Education. It trades about 0.13 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 594.00 in Fujian Oriental Silver on August 28, 2024 and sell it today you would earn a total of 121.00 from holding Fujian Oriental Silver or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Fujian Oriental Silver |
| Beijing Kaiwen Education |
Fujian Oriental and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Beijing Kaiwen
The main advantage of trading using opposite Fujian Oriental and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. Agricultural Bank of | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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