Correlation Between Shenzhen Bioeasy and Beijing Kaiwen
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Beijing Kaiwen.
Diversification Opportunities for Shenzhen Bioeasy and Beijing Kaiwen
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Beijing Kaiwen
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.19 times more return on investment than Beijing Kaiwen. However, Shenzhen Bioeasy is 1.19 times more volatile than Beijing Kaiwen Education. It trades about 0.17 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.2 per unit of risk. If you would invest 628.00 in Shenzhen Bioeasy Biotechnology on September 16, 2024 and sell it today you would earn a total of 347.00 from holding Shenzhen Bioeasy Biotechnology or generate 55.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Beijing Kaiwen Education
Performance |
Timeline |
Shenzhen Bioeasy Bio |
Beijing Kaiwen Education |
Shenzhen Bioeasy and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Bioeasy and Beijing Kaiwen
The main advantage of trading using opposite Shenzhen Bioeasy and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.Shenzhen Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Bank of China | Shenzhen Bioeasy vs. Agricultural Bank of |
Beijing Kaiwen vs. China Publishing Media | Beijing Kaiwen vs. Shenzhen Bioeasy Biotechnology | Beijing Kaiwen vs. Bloomage Biotechnology Corp | Beijing Kaiwen vs. Jiangsu Phoenix Publishing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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