Correlation Between Eastroc Beverage and Beijing Kingsoft
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By analyzing existing cross correlation between Eastroc Beverage Group and Beijing Kingsoft Office, you can compare the effects of market volatilities on Eastroc Beverage 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 Eastroc Beverage with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Beijing Kingsoft.
Diversification Opportunities for Eastroc Beverage and Beijing Kingsoft
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastroc and Beijing is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group 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 Eastroc Beverage 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 Eastroc Beverage Group 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 Eastroc Beverage i.e., Eastroc Beverage and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Beijing Kingsoft
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the Beijing Kingsoft. But the stock apears to be less risky and, when comparing its historical volatility, Eastroc Beverage Group is 1.59 times less risky than Beijing Kingsoft. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Kingsoft Office is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 28,833 in Beijing Kingsoft Office on December 25, 2024 and sell it today you would earn a total of 2,460 from holding Beijing Kingsoft Office or generate 8.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Eastroc Beverage Group vs. Beijing Kingsoft Office
Performance |
Timeline |
Eastroc Beverage |
Beijing Kingsoft Office |
Eastroc Beverage and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastroc Beverage and Beijing Kingsoft
The main advantage of trading using opposite Eastroc Beverage and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage 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.Eastroc Beverage vs. Guangdong Silvere Sci | Eastroc Beverage vs. Shengda Mining Co | Eastroc Beverage vs. Suzhou Oriental Semiconductor | Eastroc Beverage vs. Lontium Semiconductor Corp |
Beijing Kingsoft vs. Hubei Tech Semiconductors | Beijing Kingsoft vs. China National Software | Beijing Kingsoft vs. Hangzhou Pinming Software | Beijing Kingsoft vs. Thunder Software 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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