Correlation Between Guangdong Silvere and Beijing Kingsoft
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By analyzing existing cross correlation between Guangdong Silvere Sci and Beijing Kingsoft Office, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Beijing Kingsoft.
Diversification Opportunities for Guangdong Silvere and Beijing Kingsoft
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Guangdong Silvere 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 Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Beijing Kingsoft
Assuming the 90 days trading horizon Guangdong Silvere is expected to generate 2.5 times less return on investment than Beijing Kingsoft. But when comparing it to its historical volatility, Guangdong Silvere Sci is 1.69 times less risky than Beijing Kingsoft. It trades about 0.12 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 25,249 in Beijing Kingsoft Office on September 3, 2024 and sell it today you would earn a total of 4,225 from holding Beijing Kingsoft Office or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Beijing Kingsoft Office |
Guangdong Silvere and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Beijing Kingsoft
The main advantage of trading using opposite Guangdong Silvere and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Hoshine Silicon Ind |
| Beijing Kingsoft vs. Western Mining Co | Beijing Kingsoft vs. JCHX Mining Management | Beijing Kingsoft vs. Guangdong Silvere Sci | Beijing Kingsoft vs. Innovative Medical Management |
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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