Correlation Between Beijing HuaYuanYiTong and Kingsignal Technology
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Kingsignal Technology Co, you can compare the effects of market volatilities on Beijing HuaYuanYiTong and Kingsignal 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 HuaYuanYiTong with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Kingsignal Technology.
Diversification Opportunities for Beijing HuaYuanYiTong and Kingsignal Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Kingsignal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Beijing HuaYuanYiTong 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 HuaYuanYiTong Thermal are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Kingsignal Technology
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to generate 1.19 times more return on investment than Kingsignal Technology. However, Beijing HuaYuanYiTong is 1.19 times more volatile than Kingsignal Technology Co. It trades about 0.09 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about -0.09 per unit of risk. If you would invest 1,119 in Beijing HuaYuanYiTong Thermal on September 12, 2025 and sell it today you would earn a total of 148.00 from holding Beijing HuaYuanYiTong Thermal or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Kingsignal Technology Co
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Kingsignal Technology |
Beijing HuaYuanYiTong and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Kingsignal Technology
The main advantage of trading using opposite Beijing HuaYuanYiTong and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong position performs unexpectedly, Kingsignal 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.The idea behind Beijing HuaYuanYiTong Thermal and Kingsignal Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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