Correlation Between Beijing Kingsoft and Changsha Jingjia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Beijing Kingsoft and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Changsha Jingjia.
Diversification Opportunities for Beijing Kingsoft and Changsha Jingjia
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Changsha is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Changsha Jingjia
Assuming the 90 days trading horizon Beijing Kingsoft is expected to generate 4.46 times less return on investment than Changsha Jingjia. But when comparing it to its historical volatility, Beijing Kingsoft Office is 1.09 times less risky than Changsha Jingjia. It trades about 0.01 of its potential returns per unit of risk. Changsha Jingjia Microelectronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,045 in Changsha Jingjia Microelectronics on October 16, 2024 and sell it today you would earn a total of 2,777 from holding Changsha Jingjia Microelectronics or generate 45.94% 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. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Changsha Jingjia Mic |
Beijing Kingsoft and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Changsha Jingjia
The main advantage of trading using opposite Beijing Kingsoft and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia's 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 |
| Changsha Jingjia vs. Sunwave Communications Co | Changsha Jingjia vs. Aba Chemicals Corp | Changsha Jingjia vs. Songz Automobile Air | Changsha Jingjia vs. Beijing Kingsoft Office |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |