Correlation Between Beijing Kingsoft and Puyang Huicheng
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By analyzing existing cross correlation between Beijing Kingsoft Office and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Beijing Kingsoft and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Puyang Huicheng.
Diversification Opportunities for Beijing Kingsoft and Puyang Huicheng
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Puyang is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Puyang Huicheng
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Puyang Huicheng. In addition to that, Beijing Kingsoft is 1.42 times more volatile than Puyang Huicheng Electronic. It trades about -0.18 of its total potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about -0.06 per unit of volatility. If you would invest 1,479 in Puyang Huicheng Electronic on December 2, 2024 and sell it today you would lose (24.00) from holding Puyang Huicheng Electronic or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Puyang Huicheng Electronic
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Puyang Huicheng Elec |
Beijing Kingsoft and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Puyang Huicheng
The main advantage of trading using opposite Beijing Kingsoft and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Beijing Kingsoft vs. Shantou Wanshun Package | Beijing Kingsoft vs. Offcn Education Technology | Beijing Kingsoft vs. Jiangsu Phoenix Publishing | Beijing Kingsoft vs. Qingdao Foods Co |
| Puyang Huicheng vs. Longxing Chemical Stock | Puyang Huicheng vs. Qiaoyin Environmental Tech | Puyang Huicheng vs. Eit Environmental Development | Puyang Huicheng vs. Fangda Special Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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