Correlation Between Beijing Mainstreets and INKON Life
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By analyzing existing cross correlation between Beijing Mainstreets Investment and INKON Life Technology, you can compare the effects of market volatilities on Beijing Mainstreets and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and INKON Life.
Diversification Opportunities for Beijing Mainstreets and INKON Life
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and INKON is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and INKON Life go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and INKON Life
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the INKON Life. In addition to that, Beijing Mainstreets is 1.5 times more volatile than INKON Life Technology. It trades about -0.02 of its total potential returns per unit of risk. INKON Life Technology is currently generating about -0.01 per unit of volatility. If you would invest 1,153 in INKON Life Technology on October 12, 2024 and sell it today you would lose (277.00) from holding INKON Life Technology or give up 24.02% 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. INKON Life Technology
Performance |
| Timeline |
| Beijing Mainstreets |
| INKON Life Technology |
Beijing Mainstreets and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and INKON Life
The main advantage of trading using opposite Beijing Mainstreets and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Beijing Mainstreets vs. Maoming Petro Chemical Shihua | Beijing Mainstreets vs. Dhc Software Co | Beijing Mainstreets vs. Sharetronic Data Technology | Beijing Mainstreets vs. HUAQIN TECHNOLOGY LTD |
| INKON Life vs. Guangdong Shenglu Telecommunication | INKON Life vs. Threes Company Media | INKON Life vs. Fiberhome Telecommunication Technologies | INKON Life vs. Sunwave Communications Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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