Correlation Between Beijing Kingsoft and Nantong Haixing
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By analyzing existing cross correlation between Beijing Kingsoft Office and Nantong Haixing Electronics, you can compare the effects of market volatilities on Beijing Kingsoft and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Nantong Haixing.
Diversification Opportunities for Beijing Kingsoft and Nantong Haixing
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Nantong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Nantong Haixing go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Nantong Haixing
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to under-perform the Nantong Haixing. In addition to that, Beijing Kingsoft is 1.3 times more volatile than Nantong Haixing Electronics. It trades about -0.46 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.23 per unit of volatility. If you would invest 1,395 in Nantong Haixing Electronics on October 12, 2024 and sell it today you would lose (123.00) from holding Nantong Haixing Electronics or give up 8.82% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Nantong Haixing Elec |
Beijing Kingsoft and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Nantong Haixing
The main advantage of trading using opposite Beijing Kingsoft and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing'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 |
| Nantong Haixing vs. Tianjin Hi Tech Development | Nantong Haixing vs. Allwin Telecommunication Co | Nantong Haixing vs. Sichuan Teway Food | Nantong Haixing vs. Jiangxi Hengda Hi Tech |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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