Correlation Between Guangdong Qunxing and Beken Corp
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Beken Corp, you can compare the effects of market volatilities on Guangdong Qunxing and Beken Corp 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 Guangdong Qunxing with a short position of Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Beken Corp.
Diversification Opportunities for Guangdong Qunxing and Beken Corp
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Beken is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp and Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Beken Corp go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Beken Corp
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.0 times more return on investment than Beken Corp. However, Guangdong Qunxing is 1.0 times more volatile than Beken Corp. It trades about 0.02 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of risk. If you would invest 639.00 in Guangdong Qunxing Toys on September 26, 2024 and sell it today you would earn a total of 88.00 from holding Guangdong Qunxing Toys or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Beken Corp
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Beken Corp |
Guangdong Qunxing and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Beken Corp
The main advantage of trading using opposite Guangdong Qunxing and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Guangdong Qunxing vs. Sportsoul Co Ltd | Guangdong Qunxing vs. Techshine Electronics Co | Guangdong Qunxing vs. Nantong Haixing Electronics | Guangdong Qunxing vs. Xinya Electronic Co |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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