Correlation Between Beijing Kingsoft and Beijing Mainstreets
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By analyzing existing cross correlation between Beijing Kingsoft Office and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Beijing Kingsoft and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Beijing Mainstreets.
Diversification Opportunities for Beijing Kingsoft and Beijing Mainstreets
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Beijing is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Beijing Mainstreets
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Kingsoft Office is 1.18 times less risky than Beijing Mainstreets. The stock trades about -0.17 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Beijing Mainstreets Investment on October 17, 2024 and sell it today you would lose (7.00) from holding Beijing Mainstreets Investment or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Beijing Mainstreets |
Beijing Kingsoft and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Beijing Mainstreets
The main advantage of trading using opposite Beijing Kingsoft and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Beijing Mainstreets 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 Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Beijing Kingsoft vs. Jonjee Hi tech Industrial | Beijing Kingsoft vs. Guangzhou Haozhi Industrial | Beijing Kingsoft vs. Tsingtao Brewery Co | Beijing Kingsoft vs. Beijing Yanjing Brewery |
| Beijing Mainstreets vs. Heilongjiang Publishing Media | Beijing Mainstreets vs. Beijing Kingsoft Office | Beijing Mainstreets vs. Changjiang Publishing Media | Beijing Mainstreets vs. Duzhe Publishing Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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