Correlation Between Kingclean Electric and Shanghai Action
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By analyzing existing cross correlation between Kingclean Electric Co and Shanghai Action Education, you can compare the effects of market volatilities on Kingclean Electric and Shanghai Action 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 Kingclean Electric with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Shanghai Action.
Diversification Opportunities for Kingclean Electric and Shanghai Action
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Shanghai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and Kingclean Electric 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 Kingclean Electric Co are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Shanghai Action go up and down completely randomly.
Pair Corralation between Kingclean Electric and Shanghai Action
Assuming the 90 days trading horizon Kingclean Electric is expected to generate 1.16 times less return on investment than Shanghai Action. But when comparing it to its historical volatility, Kingclean Electric Co is 1.29 times less risky than Shanghai Action. It trades about 0.12 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,063 in Shanghai Action Education on September 14, 2024 and sell it today you would earn a total of 587.00 from holding Shanghai Action Education or generate 19.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kingclean Electric Co vs. Shanghai Action Education
Performance |
Timeline |
Kingclean Electric |
Shanghai Action Education |
Kingclean Electric and Shanghai Action Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kingclean Electric and Shanghai Action
The main advantage of trading using opposite Kingclean Electric and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.Kingclean Electric vs. Anji Foodstuff Co | Kingclean Electric vs. Great Sun Foods Co | Kingclean Electric vs. Beijing Yanjing Brewery | Kingclean Electric vs. Eastroc Beverage Group |
Shanghai Action vs. Kingclean Electric Co | Shanghai Action vs. Daoming OpticsChemical Co | Shanghai Action vs. Lianhe Chemical Technology | Shanghai Action vs. Miracll Chemicals 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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