Correlation Between Beijing Kingsoft and Jinhui Liquor
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By analyzing existing cross correlation between Beijing Kingsoft Office and Jinhui Liquor Co, you can compare the effects of market volatilities on Beijing Kingsoft and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Jinhui Liquor.
Diversification Opportunities for Beijing Kingsoft and Jinhui Liquor
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Jinhui is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Jinhui Liquor
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.82 times more return on investment than Jinhui Liquor. However, Beijing Kingsoft is 1.82 times more volatile than Jinhui Liquor Co. It trades about 0.03 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.14 per unit of risk. If you would invest 30,050 in Beijing Kingsoft Office on October 28, 2024 and sell it today you would earn a total of 453.00 from holding Beijing Kingsoft Office or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Jinhui Liquor Co
Performance |
| Timeline |
| Beijing Kingsoft Office |
| Jinhui Liquor |
Beijing Kingsoft and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Jinhui Liquor
The main advantage of trading using opposite Beijing Kingsoft and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor'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 |
| Jinhui Liquor vs. Luyin Investment Group | Jinhui Liquor vs. Zhejiang Construction Investment | Jinhui Liquor vs. Xiamen Insight Investment | Jinhui Liquor vs. COL Digital Publishing |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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