Correlation Between BeiGene and Kingclean Electric
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By analyzing existing cross correlation between BeiGene and Kingclean Electric Co, you can compare the effects of market volatilities on BeiGene and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Kingclean Electric.
Diversification Opportunities for BeiGene and Kingclean Electric
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Kingclean is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of BeiGene i.e., BeiGene and Kingclean Electric go up and down completely randomly.
Pair Corralation between BeiGene and Kingclean Electric
Assuming the 90 days trading horizon BeiGene is expected to generate 1.16 times less return on investment than Kingclean Electric. In addition to that, BeiGene is 1.34 times more volatile than Kingclean Electric Co. It trades about 0.08 of its total potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.12 per unit of volatility. If you would invest 2,011 in Kingclean Electric Co on September 12, 2024 and sell it today you would earn a total of 336.00 from holding Kingclean Electric Co or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Kingclean Electric Co
Performance |
| Timeline |
| BeiGene |
| Kingclean Electric |
BeiGene and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Kingclean Electric
The main advantage of trading using opposite BeiGene and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| BeiGene vs. Xinjiang Baodi Mining | BeiGene vs. Guangdong Jingyi Metal | BeiGene vs. Gem Year Industrial Co | BeiGene vs. Lonkey Industrial Co |
| Kingclean Electric vs. Chengdu Kanghua Biological | Kingclean Electric vs. Beijing Wantai Biological | Kingclean Electric vs. Suzhou Novoprotein Scientific | Kingclean Electric vs. Aluminum Corp of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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