Correlation Between Jinhui Liquor and Beijing Kaiwen
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By analyzing existing cross correlation between Jinhui Liquor Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Beijing Kaiwen.
Diversification Opportunities for Jinhui Liquor and Beijing Kaiwen
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Beijing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor 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 Jinhui Liquor 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 Jinhui Liquor 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 Jinhui Liquor i.e., Jinhui Liquor and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Beijing Kaiwen
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 5.85 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, Jinhui Liquor Co is 1.63 times less risky than Beijing Kaiwen. It trades about 0.05 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Beijing Kaiwen Education on November 4, 2024 and sell it today you would earn a total of 29.00 from holding Beijing Kaiwen Education or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Jinhui Liquor |
| Beijing Kaiwen Education |
Jinhui Liquor and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Beijing Kaiwen
The main advantage of trading using opposite Jinhui Liquor and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. Beijing Kaiwen Education | Jinhui Liquor vs. Easyhome New Retail | Jinhui Liquor vs. Xiamen Goldenhome Co | Jinhui Liquor vs. Tangel Publishing |
| Beijing Kaiwen vs. TongFu Microelectronics Co | Beijing Kaiwen vs. Simei Media Co | Beijing Kaiwen vs. Mango Excellent Media | Beijing Kaiwen vs. Wasu Media Holding |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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