Correlation Between Beijing Kingsoft and Aba Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and Aba Chemicals Corp, you can compare the effects of market volatilities on Beijing Kingsoft and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Aba Chemicals.
Diversification Opportunities for Beijing Kingsoft and Aba Chemicals
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Aba is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Aba Chemicals go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Aba Chemicals
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.11 times more return on investment than Aba Chemicals. However, Beijing Kingsoft is 1.11 times more volatile than Aba Chemicals Corp. It trades about 0.01 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.02 per unit of risk. If you would invest 30,159 in Beijing Kingsoft Office on October 16, 2024 and sell it today you would lose (4,659) from holding Beijing Kingsoft Office or give up 15.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Aba Chemicals Corp
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Aba Chemicals Corp |
Beijing Kingsoft and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Aba Chemicals
The main advantage of trading using opposite Beijing Kingsoft and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Beijing Kingsoft vs. Financial Street Holdings | Beijing Kingsoft vs. China Everbright Bank | Beijing Kingsoft vs. Fuzhou Rockchip Electronics | Beijing Kingsoft vs. TongFu Microelectronics Co |
| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Ningbo Homelink Eco iTech | Aba Chemicals vs. UE Furniture Co | Aba Chemicals vs. Peoples Insurance of |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |