Correlation Between Aba Chemicals and Beijing Kingsoft
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Beijing Kingsoft Office, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Beijing Kingsoft.
Diversification Opportunities for Aba Chemicals and Beijing Kingsoft
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aba and Beijing is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Aba Chemicals and Beijing Kingsoft
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Beijing Kingsoft. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.11 times less risky than Beijing Kingsoft. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Kingsoft Office is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 30,159 in Beijing Kingsoft Office on October 16, 2024 and sell it today you would lose (4,659) from holding Beijing Kingsoft Office or give up 15.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Aba Chemicals Corp |
| Beijing Kingsoft Office |
Aba Chemicals and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Beijing Kingsoft
The main advantage of trading using opposite Aba Chemicals and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Ningbo Homelink Eco iTech | Aba Chemicals vs. UE Furniture Co | Aba Chemicals vs. Peoples Insurance of |
| Beijing Kingsoft vs. Financial Street Holdings | Beijing Kingsoft vs. China Everbright Bank | Beijing Kingsoft vs. Fuzhou Rockchip Electronics | Beijing Kingsoft vs. TongFu Microelectronics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |