Correlation Between Beijing Bashi and Kangping Technology
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By analyzing existing cross correlation between Beijing Bashi Media and Kangping Technology Co, you can compare the effects of market volatilities on Beijing Bashi and Kangping Technology 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 Bashi with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Kangping Technology.
Diversification Opportunities for Beijing Bashi and Kangping Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Kangping is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Beijing Bashi 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 Bashi Media are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Beijing Bashi i.e., Beijing Bashi and Kangping Technology go up and down completely randomly.
Pair Corralation between Beijing Bashi and Kangping Technology
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 1.02 times more return on investment than Kangping Technology. However, Beijing Bashi is 1.02 times more volatile than Kangping Technology Co. It trades about 0.22 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.19 per unit of risk. If you would invest 322.00 in Beijing Bashi Media on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Beijing Bashi Media or generate 51.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Bashi Media vs. Kangping Technology Co
Performance |
Timeline |
Beijing Bashi Media |
Kangping Technology |
Beijing Bashi and Kangping Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Bashi and Kangping Technology
The main advantage of trading using opposite Beijing Bashi and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.Beijing Bashi vs. Lutian Machinery Co | Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. Bank of China | Beijing Bashi vs. Gansu Jiu Steel |
Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Bank of China | Kangping Technology vs. PetroChina Co Ltd |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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