Correlation Between Zoy Home and Beijing Kingsoft
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By analyzing existing cross correlation between Zoy Home Furnishing and Beijing Kingsoft Office, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Beijing Kingsoft.
Diversification Opportunities for Zoy Home and Beijing Kingsoft
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing 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 Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Zoy Home and Beijing Kingsoft
Assuming the 90 days trading horizon Zoy Home is expected to generate 1.66 times less return on investment than Beijing Kingsoft. But when comparing it to its historical volatility, Zoy Home Furnishing is 2.06 times less risky than Beijing Kingsoft. It trades about 0.25 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 18,140 in Beijing Kingsoft Office on September 12, 2024 and sell it today you would earn a total of 13,784 from holding Beijing Kingsoft Office or generate 75.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zoy Home Furnishing vs. Beijing Kingsoft Office
Performance |
Timeline |
Zoy Home Furnishing |
Beijing Kingsoft Office |
Zoy Home and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoy Home and Beijing Kingsoft
The main advantage of trading using opposite Zoy Home and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.Zoy Home vs. Lutian Machinery Co | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Bank of China | Zoy Home vs. Gansu Jiu Steel |
Beijing Kingsoft vs. Gansu Jiu Steel | Beijing Kingsoft vs. Shandong Mining Machinery | Beijing Kingsoft vs. Aba Chemicals Corp | Beijing Kingsoft vs. BlueFocus Communication Group |
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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