Correlation Between Zhejiang Orient and Beijing Kaiwen
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By analyzing existing cross correlation between Zhejiang Orient Gene and Beijing Kaiwen Education, you can compare the effects of market volatilities on Zhejiang Orient 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 Zhejiang Orient with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Beijing Kaiwen.
Diversification Opportunities for Zhejiang Orient and Beijing Kaiwen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Beijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene 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 Zhejiang Orient 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 Zhejiang Orient Gene 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 Zhejiang Orient i.e., Zhejiang Orient and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Beijing Kaiwen
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Orient Gene is 1.22 times less risky than Beijing Kaiwen. The stock trades about -0.05 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 468.00 in Beijing Kaiwen Education on September 2, 2024 and sell it today you would earn a total of 59.00 from holding Beijing Kaiwen Education or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Beijing Kaiwen Education |
Zhejiang Orient and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Beijing Kaiwen
The main advantage of trading using opposite Zhejiang Orient and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient 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.| Zhejiang Orient vs. Fujian Oriental Silver | Zhejiang Orient vs. Zhongshan Public Utilities | Zhejiang Orient vs. Vontron Technology Co | Zhejiang Orient vs. Zhangjiagang Freetrade Science |
| Beijing Kaiwen vs. Kweichow Moutai Co | Beijing Kaiwen vs. NAURA Technology Group | Beijing Kaiwen vs. Zhejiang Orient Gene | Beijing Kaiwen vs. APT Medical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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