Correlation Between Beijing Kingsoft and DO Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and DO Home Collection, you can compare the effects of market volatilities on Beijing Kingsoft and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and DO Home.
Diversification Opportunities for Beijing Kingsoft and DO Home
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and 002798 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and DO Home go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and DO Home
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 0.47 times more return on investment than DO Home. However, Beijing Kingsoft Office is 2.13 times less risky than DO Home. It trades about -0.46 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.24 per unit of risk. If you would invest 33,301 in Beijing Kingsoft Office on October 12, 2024 and sell it today you would lose (7,057) from holding Beijing Kingsoft Office or give up 21.19% 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. DO Home Collection
Performance |
| Timeline |
| Beijing Kingsoft Office |
| DO Home Collection |
Beijing Kingsoft and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and DO Home
The main advantage of trading using opposite Beijing Kingsoft and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Beijing Kingsoft vs. Eastroc Beverage Group | Beijing Kingsoft vs. Great Sun Foods Co | Beijing Kingsoft vs. Panda Dairy Corp | Beijing Kingsoft vs. JuneYao Dairy Co |
| DO Home vs. Chison Medical Technologies | DO Home vs. Tinavi Medical Technologies | DO Home vs. Chengdu B ray Media | DO Home vs. Threes Company 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |