Correlation Between Beijing Kingsoft and Anyang Iron
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By analyzing existing cross correlation between Beijing Kingsoft Office and Anyang Iron Steel, you can compare the effects of market volatilities on Beijing Kingsoft and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Anyang Iron.
Diversification Opportunities for Beijing Kingsoft and Anyang Iron
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Anyang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Anyang Iron go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Anyang Iron
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.56 times more return on investment than Anyang Iron. However, Beijing Kingsoft is 1.56 times more volatile than Anyang Iron Steel. It trades about 0.02 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.01 per unit of risk. If you would invest 30,251 in Beijing Kingsoft Office on October 29, 2024 and sell it today you would earn a total of 252.00 from holding Beijing Kingsoft Office or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Anyang Iron Steel
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Anyang Iron Steel |
Beijing Kingsoft and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Anyang Iron
The main advantage of trading using opposite Beijing Kingsoft and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Beijing Kingsoft vs. Shantui Construction Machinery | Beijing Kingsoft vs. Anhui Huilong Agricultural | Beijing Kingsoft vs. Qumei Furniture Group | Beijing Kingsoft vs. Nanxing Furniture Machinery |
| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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