Correlation Between Beijing Kingsoft and Haima Automobile
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By analyzing existing cross correlation between Beijing Kingsoft Office and Haima Automobile Group, you can compare the effects of market volatilities on Beijing Kingsoft and Haima Automobile 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 Kingsoft with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Haima Automobile.
Diversification Opportunities for Beijing Kingsoft and Haima Automobile
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Haima is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Beijing Kingsoft 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 Kingsoft Office are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Haima Automobile go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Haima Automobile
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.09 times more return on investment than Haima Automobile. However, Beijing Kingsoft is 1.09 times more volatile than Haima Automobile Group. It trades about 0.02 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.0 per unit of risk. If you would invest 30,251 in Beijing Kingsoft Office on October 29, 2024 and sell it today you would earn a total of 252.00 from holding Beijing Kingsoft Office or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Haima Automobile Group
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Haima Automobile |
Beijing Kingsoft and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Haima Automobile
The main advantage of trading using opposite Beijing Kingsoft and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Beijing Kingsoft vs. Shantui Construction Machinery | Beijing Kingsoft vs. Anhui Huilong Agricultural | Beijing Kingsoft vs. Qumei Furniture Group | Beijing Kingsoft vs. Nanxing Furniture Machinery |
| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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