Correlation Between China Everbright and Beijing Kingsoft
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By analyzing existing cross correlation between China Everbright Bank and Beijing Kingsoft Office, you can compare the effects of market volatilities on China Everbright 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 China Everbright with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Beijing Kingsoft.
Diversification Opportunities for China Everbright and Beijing Kingsoft
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank 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 China Everbright 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 China Everbright Bank 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 China Everbright i.e., China Everbright and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between China Everbright and Beijing Kingsoft
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.6 times more return on investment than Beijing Kingsoft. However, China Everbright Bank is 1.66 times less risky than Beijing Kingsoft. It trades about -0.1 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about -0.38 per unit of risk. If you would invest 373.00 in China Everbright Bank on October 16, 2024 and sell it today you would lose (12.00) from holding China Everbright Bank or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Beijing Kingsoft Office
Performance |
| Timeline |
| China Everbright Bank |
| Beijing Kingsoft Office |
China Everbright and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Beijing Kingsoft
The main advantage of trading using opposite China Everbright and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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.| China Everbright vs. Fiberhome Telecommunication Technologies | China Everbright vs. Wintao Communications Co | China Everbright vs. Tongyu Communication | China Everbright vs. Runjian Communication Co |
| Beijing Kingsoft vs. Lotus Health Group | Beijing Kingsoft vs. Shandong Sinoglory Health | Beijing Kingsoft vs. Mingchen Health Co | Beijing Kingsoft vs. Everjoy Health Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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