Correlation Between Xiamen Goldenhome and Beijing Kaiwen
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Beijing Kaiwen.
Diversification Opportunities for Xiamen Goldenhome and Beijing Kaiwen
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Beijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co 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 Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Beijing Kaiwen
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 0.5 times more return on investment than Beijing Kaiwen. However, Xiamen Goldenhome Co is 2.01 times less risky than Beijing Kaiwen. It trades about -0.44 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.33 per unit of risk. If you would invest 2,288 in Xiamen Goldenhome Co on October 14, 2024 and sell it today you would lose (398.00) from holding Xiamen Goldenhome Co or give up 17.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Xiamen Goldenhome |
| Beijing Kaiwen Education |
Xiamen Goldenhome and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Beijing Kaiwen
The main advantage of trading using opposite Xiamen Goldenhome and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Shenyang Chemical Industry | Xiamen Goldenhome vs. Dymatic Chemicals | Xiamen Goldenhome vs. Wuxi Chemical Equipment | Xiamen Goldenhome vs. Guangzhou Jointas Chemical |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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