Correlation Between Beijing Kingsoft and Beijing Kaiwen
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By analyzing existing cross correlation between Beijing Kingsoft Office and Beijing Kaiwen Education, you can compare the effects of market volatilities on Beijing Kingsoft and Beijing Kaiwen 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 Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Beijing Kaiwen.
Diversification Opportunities for Beijing Kingsoft and Beijing Kaiwen
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Beijing Kaiwen
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Beijing Kaiwen. In addition to that, Beijing Kingsoft is 1.1 times more volatile than Beijing Kaiwen Education. It trades about -0.08 of its total potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.06 per unit of volatility. If you would invest 471.00 in Beijing Kaiwen Education on October 22, 2024 and sell it today you would lose (18.00) from holding Beijing Kaiwen Education or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Beijing Kaiwen Education |
Beijing Kingsoft and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Beijing Kaiwen
The main advantage of trading using opposite Beijing Kingsoft and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Beijing Kaiwen 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 Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Beijing Kingsoft vs. Shandong Polymer Biochemicals | Beijing Kingsoft vs. Hubei Xingfa Chemicals | Beijing Kingsoft vs. Zhejiang Publishing Media | Beijing Kingsoft vs. Do Fluoride Chemicals Co |
| Beijing Kaiwen vs. Beijing Kingsoft Office | Beijing Kaiwen vs. Dazhong Transportation Group | Beijing Kaiwen vs. Sportsoul Co Ltd | Beijing Kaiwen vs. Shanghai Action Education |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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