Correlation Between Beijing Kingsoft and Guangdong Marubi
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By analyzing existing cross correlation between Beijing Kingsoft Office and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Beijing Kingsoft and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Kingsoft and Guangdong Marubi.
Diversification Opportunities for Beijing Kingsoft and Guangdong Marubi
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Guangdong is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Kingsoft Office and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Beijing Kingsoft i.e., Beijing Kingsoft and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Beijing Kingsoft and Guangdong Marubi
Assuming the 90 days trading horizon Beijing Kingsoft Office is expected to generate 1.32 times more return on investment than Guangdong Marubi. However, Beijing Kingsoft is 1.32 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.42 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.04 per unit of risk. If you would invest 25,765 in Beijing Kingsoft Office on November 7, 2024 and sell it today you would earn a total of 5,635 from holding Beijing Kingsoft Office or generate 21.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Kingsoft Office vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Beijing Kingsoft Office |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Guangdong Marubi Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Beijing Kingsoft and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Kingsoft and Guangdong Marubi
The main advantage of trading using opposite Beijing Kingsoft and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Kingsoft position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Beijing Kingsoft vs. Zhejiang Zanyu Technology | Beijing Kingsoft vs. Shanghai SK Automation | Beijing Kingsoft vs. ShenZhen YUTO Packaging |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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