Correlation Between Shanghai OPM and Beijing Kaiwen
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shanghai OPM 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 OPM with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Beijing Kaiwen.
Diversification Opportunities for Shanghai OPM and Beijing Kaiwen
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Beijing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences 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 OPM 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 OPM Biosciences 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 OPM i.e., Shanghai OPM and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shanghai OPM and Beijing Kaiwen
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 1.27 times more return on investment than Beijing Kaiwen. However, Shanghai OPM is 1.27 times more volatile than Beijing Kaiwen Education. It trades about 0.19 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.18 per unit of risk. If you would invest 2,650 in Shanghai OPM Biosciences on September 12, 2024 and sell it today you would earn a total of 1,738 from holding Shanghai OPM Biosciences or generate 65.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Beijing Kaiwen Education |
Shanghai OPM and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Beijing Kaiwen
The main advantage of trading using opposite Shanghai OPM and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM 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 OPM vs. Western Superconducting Tech | Shanghai OPM vs. Shenzhen Centralcon Investment | Shanghai OPM vs. Kuangda Technology Group | Shanghai OPM vs. Changchun UP Optotech |
| Beijing Kaiwen vs. Nanjing Putian Telecommunications | Beijing Kaiwen vs. Tianjin Realty Development | Beijing Kaiwen vs. Kangyue Technology Co | Beijing Kaiwen vs. Shenzhen Hifuture Electric |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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