Correlation Between Beijing Roborock and Kuang Chi
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By analyzing existing cross correlation between Beijing Roborock Technology and Kuang Chi Technologies, you can compare the effects of market volatilities on Beijing Roborock and Kuang Chi 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 Roborock with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Kuang Chi.
Diversification Opportunities for Beijing Roborock and Kuang Chi
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Kuang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Beijing Roborock 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 Roborock Technology are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Kuang Chi go up and down completely randomly.
Pair Corralation between Beijing Roborock and Kuang Chi
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Roborock Technology is 1.15 times less risky than Kuang Chi. The stock trades about -0.05 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,965 in Kuang Chi Technologies on November 5, 2024 and sell it today you would earn a total of 100.00 from holding Kuang Chi Technologies or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Kuang Chi Technologies
Performance |
| Timeline |
| Beijing Roborock Tec |
| Kuang Chi Technologies |
Beijing Roborock and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Kuang Chi
The main advantage of trading using opposite Beijing Roborock and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Beijing Roborock vs. Beijing Enlight Media | Beijing Roborock vs. Jointo Energy Investment | Beijing Roborock vs. Cultural Investment Holdings | Beijing Roborock vs. Chengdu Xingrong Investment |
| Kuang Chi vs. Holitech Technology Co | Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Qiaoyin Environmental Tech | Kuang Chi vs. Fujian Nanwang Environment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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