Correlation Between Beijing Bashi and Kangxin New
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By analyzing existing cross correlation between Beijing Bashi Media and Kangxin New Materials, you can compare the effects of market volatilities on Beijing Bashi and Kangxin New 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 Bashi with a short position of Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Kangxin New.
Diversification Opportunities for Beijing Bashi and Kangxin New
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Kangxin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials and Beijing Bashi 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 Bashi Media are associated (or correlated) with Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Kangxin New go up and down completely randomly.
Pair Corralation between Beijing Bashi and Kangxin New
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.31 times less return on investment than Kangxin New. But when comparing it to its historical volatility, Beijing Bashi Media is 1.08 times less risky than Kangxin New. It trades about 0.27 of its potential returns per unit of risk. Kangxin New Materials is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Kangxin New Materials on September 4, 2024 and sell it today you would earn a total of 133.00 from holding Kangxin New Materials or generate 95.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bashi Media vs. Kangxin New Materials
Performance |
| Timeline |
| Beijing Bashi Media |
| Kangxin New Materials |
Beijing Bashi and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Kangxin New
The main advantage of trading using opposite Beijing Bashi and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Beijing Bashi vs. Shanghai Rendu Biotechnology | Beijing Bashi vs. Suzhou Douson Drilling | Beijing Bashi vs. Anhui Gujing Distillery | Beijing Bashi vs. Ningxia Younglight Chemicals |
| Kangxin New vs. Inly Media Co | Kangxin New vs. Tsingtao Brewery Co | Kangxin New vs. HMTNew Technical | Kangxin New vs. Beijing Bashi Media |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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