Correlation Between Bank of China and Beijing Kingsoft
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By analyzing existing cross correlation between Bank of China and Beijing Kingsoft Office, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Beijing Kingsoft.
Diversification Opportunities for Bank of China and Beijing Kingsoft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Beijing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Bank of China and Beijing Kingsoft
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Beijing Kingsoft. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 2.4 times less risky than Beijing Kingsoft. The stock trades about -0.14 of its potential returns per unit of risk. The Beijing Kingsoft Office is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29,540 in Beijing Kingsoft Office on October 29, 2024 and sell it today you would earn a total of 963.00 from holding Beijing Kingsoft Office or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Bank of China |
| Beijing Kingsoft Office |
Bank of China and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Beijing Kingsoft
The main advantage of trading using opposite Bank of China and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Gifore Agricultural Machinery | Bank of China vs. Shantui Construction Machinery | Bank of China vs. Qingdao Foods Co | Bank of China vs. Fujian Anjoy Foods |
| Beijing Kingsoft vs. Shantui Construction Machinery | Beijing Kingsoft vs. Anhui Huilong Agricultural | Beijing Kingsoft vs. Qumei Furniture Group | Beijing Kingsoft vs. Nanxing Furniture Machinery |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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