Correlation Between Beijing Kingsoft and Ming Yang
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By analyzing existing cross correlation between Beijing Kingsoft Office and Ming Yang Smart, you can compare the effects of market volatilities on Beijing Kingsoft and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Ming Yang.
Diversification Opportunities for Beijing Kingsoft and Ming Yang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Ming is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Ming Yang go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Ming Yang
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.37 times more return on investment than Ming Yang. However, Beijing Kingsoft is 1.37 times more volatile than Ming Yang Smart. It trades about 0.19 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.12 per unit of risk. If you would invest 28,409 in Beijing Kingsoft Office on September 13, 2024 and sell it today you would earn a total of 4,892 from holding Beijing Kingsoft Office or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Ming Yang Smart
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Ming Yang Smart |
Beijing Kingsoft and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Ming Yang
The main advantage of trading using opposite Beijing Kingsoft and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Beijing Kingsoft vs. Ming Yang Smart | Beijing Kingsoft vs. 159681 | Beijing Kingsoft vs. 159005 | Beijing Kingsoft vs. Loctek Ergonomic Technology |
| Ming Yang vs. Shenyang Huitian Thermal | Ming Yang vs. Beijing HuaYuanYiTong Thermal | Ming Yang vs. Zhejiang Yayi Metal | Ming Yang vs. Luyin Investment Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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