Correlation Between Beijing Kingsoft and Hua Xia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and Hua Xia Bank, you can compare the effects of market volatilities on Beijing Kingsoft and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Hua Xia.
Diversification Opportunities for Beijing Kingsoft and Hua Xia
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Hua is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Hua Xia go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Hua Xia
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Hua Xia. In addition to that, Beijing Kingsoft is 2.56 times more volatile than Hua Xia Bank. It trades about -0.17 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.12 per unit of volatility. If you would invest 778.00 in Hua Xia Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Hua Xia Bank or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Hua Xia Bank
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Hua Xia Bank |
Beijing Kingsoft and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Hua Xia
The main advantage of trading using opposite Beijing Kingsoft and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Beijing Kingsoft vs. Jonjee Hi tech Industrial | Beijing Kingsoft vs. Guangzhou Haozhi Industrial | Beijing Kingsoft vs. Tsingtao Brewery Co | Beijing Kingsoft vs. Beijing Yanjing Brewery |
| Hua Xia vs. Guangzhou Haige Communications | Hua Xia vs. Guangxi Wuzhou Communications | Hua Xia vs. Beijing Kingsoft Office | Hua Xia vs. Queclink Wireless Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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