Correlation Between Beijing Kingsoft and Jiangxi Naipu
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By analyzing existing cross correlation between Beijing Kingsoft Office and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Beijing Kingsoft and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Jiangxi Naipu.
Diversification Opportunities for Beijing Kingsoft and Jiangxi Naipu
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jiangxi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Jiangxi Naipu
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Jiangxi Naipu. In addition to that, Beijing Kingsoft is 1.61 times more volatile than Jiangxi Naipu Mining. It trades about -0.45 of its total potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.3 per unit of volatility. If you would invest 2,935 in Jiangxi Naipu Mining on October 12, 2024 and sell it today you would lose (279.00) from holding Jiangxi Naipu Mining or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Jiangxi Naipu Mining |
Beijing Kingsoft and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Jiangxi Naipu
The main advantage of trading using opposite Beijing Kingsoft and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Beijing Kingsoft vs. Shaanxi Broadcast TV | Beijing Kingsoft vs. Fujian Longzhou Transportation | Beijing Kingsoft vs. Silkroad Visual Technology | Beijing Kingsoft vs. Dongfeng Automobile Co |
| Jiangxi Naipu vs. Gansu Huangtai Wine marketing | Jiangxi Naipu vs. Dawning Information Industry | Jiangxi Naipu vs. Fiberhome Telecommunication Technologies | Jiangxi Naipu 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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