Correlation Between Beijing Kingsoft and Ningbo MedicalSystem
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By analyzing existing cross correlation between Beijing Kingsoft Office and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Beijing Kingsoft and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Ningbo MedicalSystem.
Diversification Opportunities for Beijing Kingsoft and Ningbo MedicalSystem
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Ningbo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Ningbo MedicalSystem
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.7 times more return on investment than Ningbo MedicalSystem. However, Beijing Kingsoft is 1.7 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 29,422 in Beijing Kingsoft Office on October 11, 2024 and sell it today you would lose (3,644) from holding Beijing Kingsoft Office or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Ningbo MedicalSystem |
Beijing Kingsoft and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Ningbo MedicalSystem
The main advantage of trading using opposite Beijing Kingsoft and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem'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 |
| Ningbo MedicalSystem vs. City Development Environment | Ningbo MedicalSystem vs. Hunan Tyen Machinery | Ningbo MedicalSystem vs. Masterwork Machinery | Ningbo MedicalSystem vs. Jinlong Machinery Electronic |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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