Correlation Between Beijing Mainstreets and Kuang Chi
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Kuang Chi Technologies, you can compare the effects of market volatilities on Beijing Mainstreets and Kuang Chi 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 Beijing Mainstreets with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Kuang Chi.
Diversification Opportunities for Beijing Mainstreets and Kuang Chi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Kuang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Kuang Chi go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Kuang Chi
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Mainstreets Investment is 1.01 times less risky than Kuang Chi. The stock trades about -0.02 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,167 in Kuang Chi Technologies on October 17, 2024 and sell it today you would lose (38.00) from holding Kuang Chi Technologies or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Kuang Chi Technologies
Performance |
| Timeline |
| Beijing Mainstreets |
| Kuang Chi Technologies |
Beijing Mainstreets and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Kuang Chi
The main advantage of trading using opposite Beijing Mainstreets and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Beijing Mainstreets vs. Heilongjiang Publishing Media | Beijing Mainstreets vs. Beijing Kingsoft Office | Beijing Mainstreets vs. Changjiang Publishing Media | Beijing Mainstreets vs. Duzhe Publishing Media |
| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guangzhou Jointas Chemical | Kuang Chi vs. Soyea Technology Co | Kuang Chi vs. Maxvision Technology Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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