Correlation Between Beijing Kingsoft and Yili Chuanning
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By analyzing existing cross correlation between Beijing Kingsoft Office and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Beijing Kingsoft and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Yili Chuanning.
Diversification Opportunities for Beijing Kingsoft and Yili Chuanning
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Yili is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Yili Chuanning go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Yili Chuanning
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.85 times more return on investment than Yili Chuanning. However, Beijing Kingsoft is 1.85 times more volatile than Yili Chuanning Biotechnology. It trades about 0.42 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.06 per unit of risk. If you would invest 25,765 in Beijing Kingsoft Office on November 5, 2024 and sell it today you would earn a total of 5,635 from holding Beijing Kingsoft Office or generate 21.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Yili Chuanning Biote |
Beijing Kingsoft and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Yili Chuanning
The main advantage of trading using opposite Beijing Kingsoft and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Beijing Kingsoft vs. Eastern Air Logistics | Beijing Kingsoft vs. Quectel Wireless Solutions | Beijing Kingsoft vs. Queclink Wireless Solutions | Beijing Kingsoft vs. Guangdong Qunxing Toys |
| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. G bits Network Technology | Yili Chuanning vs. Anhui Gujing Distillery | Yili Chuanning vs. Anhui Gujing Distillery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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