Correlation Between AUPU Home and Beijing Kaiwen
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By analyzing existing cross correlation between AUPU Home Style and Beijing Kaiwen Education, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Beijing Kaiwen.
Diversification Opportunities for AUPU Home and Beijing Kaiwen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUPU and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style 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 AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between AUPU Home and Beijing Kaiwen
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 0.41 times more return on investment than Beijing Kaiwen. However, AUPU Home Style is 2.45 times less risky than Beijing Kaiwen. It trades about -0.4 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 1,165 in AUPU Home Style on October 14, 2024 and sell it today you would lose (154.00) from holding AUPU Home Style or give up 13.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Beijing Kaiwen Education
Performance |
| Timeline |
| AUPU Home Style |
| Beijing Kaiwen Education |
AUPU Home and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Beijing Kaiwen
The main advantage of trading using opposite AUPU Home and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.| AUPU Home vs. Citic Guoan Wine | AUPU Home vs. Runjian Communication Co | AUPU Home vs. Gansu Huangtai Wine marketing | AUPU Home vs. Guangzhou Haozhi Industrial |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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