Correlation Between Threes Company and Beijing Kingsoft
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By analyzing existing cross correlation between Threes Company Media and Beijing Kingsoft Office, you can compare the effects of market volatilities on Threes Company 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 Threes Company with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Beijing Kingsoft.
Diversification Opportunities for Threes Company and Beijing Kingsoft
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Threes and Beijing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media 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 Threes Company 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 Threes Company Media 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 Threes Company i.e., Threes Company and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Threes Company and Beijing Kingsoft
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Beijing Kingsoft. In addition to that, Threes Company is 1.02 times more volatile than Beijing Kingsoft Office. It trades about -0.03 of its total potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.01 per unit of volatility. If you would invest 30,159 in Beijing Kingsoft Office on October 14, 2024 and sell it today you would lose (4,608) from holding Beijing Kingsoft Office or give up 15.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Threes Company |
| Beijing Kingsoft Office |
Threes Company and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Beijing Kingsoft
The main advantage of trading using opposite Threes Company and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company 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.| Threes Company vs. Zhongrun Resources Investment | Threes Company vs. Henan Shuanghui Investment | Threes Company vs. Bomesc Offshore Engineering | Threes Company vs. Postal Savings Bank |
| Beijing Kingsoft vs. Threes Company Media | Beijing Kingsoft vs. Sportsoul Co Ltd | Beijing Kingsoft vs. Yankershop Food Co | Beijing Kingsoft vs. Omnijoi Media Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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