Correlation Between Beijing Kingsoft and Chongqing Road
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Kingsoft Office and Chongqing Road Bridge, you can compare the effects of market volatilities on Beijing Kingsoft and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Chongqing Road.
Diversification Opportunities for Beijing Kingsoft and Chongqing Road
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Chongqing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Chongqing Road go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Chongqing Road
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 0.71 times more return on investment than Chongqing Road. However, Beijing Kingsoft Office is 1.42 times less risky than Chongqing Road. It trades about -0.46 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about -0.44 per unit of risk. If you would invest 33,301 in Beijing Kingsoft Office on October 12, 2024 and sell it today you would lose (7,057) from holding Beijing Kingsoft Office or give up 21.19% 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. Chongqing Road Bridge
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Chongqing Road Bridge |
Beijing Kingsoft and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Chongqing Road
The main advantage of trading using opposite Beijing Kingsoft and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Beijing Kingsoft vs. Eastroc Beverage Group | Beijing Kingsoft vs. Great Sun Foods Co | Beijing Kingsoft vs. Panda Dairy Corp | Beijing Kingsoft vs. JuneYao Dairy Co |
| Chongqing Road vs. Ningbo Construction Co | Chongqing Road vs. Sinomach General Machinery | Chongqing Road vs. Beijing Kingsoft Office | Chongqing Road vs. Quectel 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |