Correlation Between Beijing Kingsoft and Hangzhou Weiguang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Beijing Kingsoft and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Hangzhou Weiguang.
Diversification Opportunities for Beijing Kingsoft and Hangzhou Weiguang
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Hangzhou is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Hangzhou Weiguang
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.54 times more return on investment than Hangzhou Weiguang. However, Beijing Kingsoft is 1.54 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.01 per unit of risk. If you would invest 28,945 in Beijing Kingsoft Office on November 2, 2024 and sell it today you would earn a total of 2,455 from holding Beijing Kingsoft Office or generate 8.48% 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. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Hangzhou Weiguang |
Beijing Kingsoft and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Hangzhou Weiguang
The main advantage of trading using opposite Beijing Kingsoft and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Beijing Kingsoft vs. Hygon Information Technology | Beijing Kingsoft vs. Longmaster Information Tech | Beijing Kingsoft vs. HengFeng Information Technology | Beijing Kingsoft vs. Servyou Software Group |
| Hangzhou Weiguang vs. Eyebright Medical Technology | Hangzhou Weiguang vs. Bonree Data Technology | Hangzhou Weiguang vs. Jinxiandai Information Industry | Hangzhou Weiguang vs. YLZ Information Tech |
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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |