Correlation Between Fujian Newland and Beijing Kingsoft
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By analyzing existing cross correlation between Fujian Newland Computer and Beijing Kingsoft Office, you can compare the effects of market volatilities on Fujian Newland and Beijing Kingsoft 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 Fujian Newland with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Beijing Kingsoft.
Diversification Opportunities for Fujian Newland and Beijing Kingsoft
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Beijing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office and Fujian Newland 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 Fujian Newland Computer are associated (or correlated) with Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Fujian Newland i.e., Fujian Newland and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Fujian Newland and Beijing Kingsoft
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.82 times more return on investment than Beijing Kingsoft. However, Fujian Newland Computer is 1.22 times less risky than Beijing Kingsoft. It trades about 0.01 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about -0.05 per unit of risk. If you would invest 1,811 in Fujian Newland Computer on October 8, 2024 and sell it today you would lose (24.00) from holding Fujian Newland Computer or give up 1.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Newland Computer vs. Beijing Kingsoft Office
Performance |
Timeline |
Fujian Newland Computer |
Beijing Kingsoft Office |
Fujian Newland and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Newland and Beijing Kingsoft
The main advantage of trading using opposite Fujian Newland and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.Fujian Newland vs. Guangzhou Seagull Kitchen | Fujian Newland vs. China Everbright Bank | Fujian Newland vs. Yindu Kitchen Equipment | Fujian Newland vs. Ningbo Tech Bank Co |
Beijing Kingsoft vs. Nanjing Putian Telecommunications | Beijing Kingsoft vs. Wuhan Yangtze Communication | Beijing Kingsoft vs. Dr Peng Telecom | Beijing Kingsoft vs. Dhc Software Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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