Correlation Between Beijing Kingsoft and Guosheng Financial
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By analyzing existing cross correlation between Beijing Kingsoft Office and Guosheng Financial Holding, you can compare the effects of market volatilities on Beijing Kingsoft and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Guosheng Financial.
Diversification Opportunities for Beijing Kingsoft and Guosheng Financial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Guosheng is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Guosheng Financial go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Guosheng Financial
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 0.86 times more return on investment than Guosheng Financial. However, Beijing Kingsoft Office is 1.17 times less risky than Guosheng Financial. It trades about 0.11 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about -0.03 per unit of risk. If you would invest 29,540 in Beijing Kingsoft Office on October 30, 2024 and sell it today you would earn a total of 1,860 from holding Beijing Kingsoft Office or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Guosheng Financial Holding
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Guosheng Financial |
Beijing Kingsoft and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Guosheng Financial
The main advantage of trading using opposite Beijing Kingsoft and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Beijing Kingsoft vs. Allmed Medical Products | Beijing Kingsoft vs. Anji Foodstuff Co | Beijing Kingsoft vs. Namchow Food Group | Beijing Kingsoft vs. HaiXin Foods Co |
| Guosheng Financial vs. Wintao Communications Co | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. China Satellite Communications | Guosheng Financial vs. Pengxin International Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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