Correlation Between China Publishing and Beijing Kaiwen
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By analyzing existing cross correlation between China Publishing Media and Beijing Kaiwen Education, you can compare the effects of market volatilities on China 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 China Publishing with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Beijing Kaiwen.
Diversification Opportunities for China Publishing and Beijing Kaiwen
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Beijing is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China 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 China 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 China 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 China Publishing i.e., China Publishing and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between China Publishing and Beijing Kaiwen
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.14 times more return on investment than Beijing Kaiwen. However, China Publishing is 1.14 times more volatile than Beijing Kaiwen Education. It trades about 0.05 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.02 per unit of risk. If you would invest 509.00 in China Publishing Media on August 30, 2024 and sell it today you would earn a total of 342.00 from holding China Publishing Media or generate 67.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Beijing Kaiwen Education
Performance |
| Timeline |
| China Publishing Media |
| Beijing Kaiwen Education |
China Publishing and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Beijing Kaiwen
The main advantage of trading using opposite China Publishing and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China 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.| China Publishing vs. Industrial and Commercial | China Publishing vs. Agricultural Bank of | China Publishing vs. China Construction Bank | China Publishing vs. Bank of China |
| Beijing Kaiwen vs. PetroChina Co Ltd | Beijing Kaiwen vs. China State Construction | Beijing Kaiwen vs. China Mobile Limited | Beijing Kaiwen vs. Industrial and Commercial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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