Correlation Between Shanghai Ziyan and Beijing Kaiwen
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Beijing Kaiwen.
Diversification Opportunities for Shanghai Ziyan and Beijing Kaiwen
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Beijing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan 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 Shanghai Ziyan 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 Shanghai Ziyan 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 Shanghai Ziyan i.e., Shanghai Ziyan and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Beijing Kaiwen
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Beijing Kaiwen. In addition to that, Shanghai Ziyan is 1.53 times more volatile than Beijing Kaiwen Education. It trades about -0.12 of its total potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.0 per unit of volatility. If you would invest 449.00 in Beijing Kaiwen Education on October 26, 2024 and sell it today you would lose (2.00) from holding Beijing Kaiwen Education or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Beijing Kaiwen Education |
Shanghai Ziyan and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Beijing Kaiwen
The main advantage of trading using opposite Shanghai Ziyan and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Ming Yang Smart | Shanghai Ziyan vs. 159681 | Shanghai Ziyan vs. 159005 | Shanghai Ziyan vs. Loctek Ergonomic Technology |
| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. China Construction Bank |
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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