Correlation Between Shandong Publishing and Beijing Kaiwen
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By analyzing existing cross correlation between Shandong Publishing Media and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Beijing Kaiwen.
Diversification Opportunities for Shandong Publishing and Beijing Kaiwen
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Beijing is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media 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 Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shandong Publishing and Beijing Kaiwen
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 0.59 times more return on investment than Beijing Kaiwen. However, Shandong Publishing Media is 1.68 times less risky than Beijing Kaiwen. It trades about -0.27 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.45 per unit of risk. If you would invest 1,149 in Shandong Publishing Media on October 15, 2024 and sell it today you would lose (139.00) from holding Shandong Publishing Media or give up 12.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shandong Publishing Media |
| Beijing Kaiwen Education |
Shandong Publishing and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Beijing Kaiwen
The main advantage of trading using opposite Shandong Publishing and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.| Shandong Publishing vs. Sinomach Automobile Co | Shandong Publishing vs. Haima Automobile Group | Shandong Publishing vs. Longxing Chemical Stock | Shandong Publishing vs. Xinxiang Chemical Fiber |
| Beijing Kaiwen vs. Xiamen Goldenhome Co | Beijing Kaiwen vs. Shanghai Shuixing Home | Beijing Kaiwen vs. AUPU Home Style | Beijing Kaiwen vs. Ningbo Homelink Eco iTech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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