Correlation Between Financial Street and Beijing Kingsoft
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By analyzing existing cross correlation between Financial Street Holdings and Beijing Kingsoft Office, you can compare the effects of market volatilities on Financial Street and Beijing Kingsoft 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 Financial Street with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Beijing Kingsoft.
Diversification Opportunities for Financial Street and Beijing Kingsoft
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Financial and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office and Financial Street 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 Financial Street Holdings are associated (or correlated) with Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Financial Street i.e., Financial Street and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Financial Street and Beijing Kingsoft
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Beijing Kingsoft. But the stock apears to be less risky and, when comparing its historical volatility, Financial Street Holdings is 1.16 times less risky than Beijing Kingsoft. The stock trades about -0.5 of its potential returns per unit of risk. The Beijing Kingsoft Office is currently generating about -0.38 of returns per unit of risk over similar time horizon. If you would invest 31,060 in Beijing Kingsoft Office on October 16, 2024 and sell it today you would lose (5,560) from holding Beijing Kingsoft Office or give up 17.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Financial Street Holdings |
| Beijing Kingsoft Office |
Financial Street and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Beijing Kingsoft
The main advantage of trading using opposite Financial Street and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Beijing Kingsoft 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 Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.| Financial Street vs. Hubei Geoway Investment | Financial Street vs. Zhongzhu Medical Holdings | Financial Street vs. Nuode Investment Co | Financial Street vs. Medprin Regenerative Medical |
| Beijing Kingsoft vs. Lotus Health Group | Beijing Kingsoft vs. Shandong Sinoglory Health | Beijing Kingsoft vs. Mingchen Health Co | Beijing Kingsoft vs. Everjoy Health Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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