Correlation Between BeiGene and Kuang Chi
Specify exactly 2 symbols:
By analyzing existing cross correlation between BeiGene and Kuang Chi Technologies, you can compare the effects of market volatilities on BeiGene 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 BeiGene with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Kuang Chi.
Diversification Opportunities for BeiGene and Kuang Chi
Poor diversification
The 3 months correlation between BeiGene and Kuang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene 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 BeiGene 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 BeiGene 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 BeiGene i.e., BeiGene and Kuang Chi go up and down completely randomly.
Pair Corralation between BeiGene and Kuang Chi
Assuming the 90 days trading horizon BeiGene is expected to generate 3.34 times less return on investment than Kuang Chi. But when comparing it to its historical volatility, BeiGene is 1.06 times less risky than Kuang Chi. It trades about 0.03 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,613 in Kuang Chi Technologies on September 13, 2024 and sell it today you would earn a total of 2,530 from holding Kuang Chi Technologies or generate 156.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Kuang Chi Technologies
Performance |
| Timeline |
| BeiGene |
| Kuang Chi Technologies |
BeiGene and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Kuang Chi
The main advantage of trading using opposite BeiGene and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene 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.| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |