Correlation Between Shandong Sinoglory and Beijing Kingsoft
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By analyzing existing cross correlation between Shandong Sinoglory Health and Beijing Kingsoft Office, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Beijing Kingsoft.
Diversification Opportunities for Shandong Sinoglory and Beijing Kingsoft
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health 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 Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Beijing Kingsoft
Assuming the 90 days trading horizon Shandong Sinoglory is expected to generate 4.0 times less return on investment than Beijing Kingsoft. But when comparing it to its historical volatility, Shandong Sinoglory Health is 2.07 times less risky than Beijing Kingsoft. It trades about 0.05 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20,002 in Beijing Kingsoft Office on October 30, 2024 and sell it today you would earn a total of 11,398 from holding Beijing Kingsoft Office or generate 56.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Beijing Kingsoft Office |
Shandong Sinoglory and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Beijing Kingsoft
The main advantage of trading using opposite Shandong Sinoglory and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. Guangzhou Ruoyuchen Information | Shandong Sinoglory vs. Hygon Information Technology | Shandong Sinoglory vs. Anhui Transport Consulting | Shandong Sinoglory vs. Emdoor Information Co |
| Beijing Kingsoft vs. Allmed Medical Products | Beijing Kingsoft vs. Anji Foodstuff Co | Beijing Kingsoft vs. Namchow Food Group | Beijing Kingsoft vs. HaiXin Foods 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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