Correlation Between Beijing Kingsoft and Cultural Investment
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By analyzing existing cross correlation between Beijing Kingsoft Office and Cultural Investment Holdings, you can compare the effects of market volatilities on Beijing Kingsoft and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Cultural Investment.
Diversification Opportunities for Beijing Kingsoft and Cultural Investment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Cultural is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Cultural Investment go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Cultural Investment
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.85 times more return on investment than Cultural Investment. However, Beijing Kingsoft is 1.85 times more volatile than Cultural Investment Holdings. It trades about 0.36 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.04 per unit of risk. If you would invest 26,168 in Beijing Kingsoft Office on November 4, 2024 and sell it today you would earn a total of 5,232 from holding Beijing Kingsoft Office or generate 19.99% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Cultural Investment |
Beijing Kingsoft and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Cultural Investment
The main advantage of trading using opposite Beijing Kingsoft and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Beijing Kingsoft vs. Tongyu Communication | Beijing Kingsoft vs. Soyea Technology Co | Beijing Kingsoft vs. ROPEOK Technology Group | Beijing Kingsoft vs. Tianjin Hi Tech Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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