Correlation Between Beijing Kingsoft and Queclink Wireless
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By analyzing existing cross correlation between Beijing Kingsoft Office and Queclink Wireless Solutions, you can compare the effects of market volatilities on Beijing Kingsoft and Queclink Wireless 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 Queclink Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Queclink Wireless.
Diversification Opportunities for Beijing Kingsoft and Queclink Wireless
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Queclink is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Queclink Wireless Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queclink Wireless 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 Queclink Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queclink Wireless has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Queclink Wireless go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Queclink Wireless
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.0 times more return on investment than Queclink Wireless. However, Beijing Kingsoft Office is 1.0 times less risky than Queclink Wireless. It trades about 0.11 of its potential returns per unit of risk. Queclink Wireless Solutions is currently generating about -0.1 per unit of risk. If you would invest 29,540 in Beijing Kingsoft Office on October 30, 2024 and sell it today you would earn a total of 1,860 from holding Beijing Kingsoft Office or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Queclink Wireless Solutions
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Queclink Wireless |
Beijing Kingsoft and Queclink Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Queclink Wireless
The main advantage of trading using opposite Beijing Kingsoft and Queclink Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Queclink Wireless 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 Queclink Wireless will offset losses from the drop in Queclink Wireless' long position.| Beijing Kingsoft vs. Allmed Medical Products | Beijing Kingsoft vs. Anji Foodstuff Co | Beijing Kingsoft vs. Namchow Food Group | Beijing Kingsoft vs. HaiXin Foods Co |
| Queclink Wireless vs. Heilongjiang Publishing Media | Queclink Wireless vs. Offcn Education Technology | Queclink Wireless vs. Southern PublishingMedia Co | Queclink Wireless vs. Chinese Universe Publishing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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