Correlation Between Sinosteel Engineering and Kingclean Electric
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By analyzing existing cross correlation between Sinosteel Engineering and and Kingclean Electric Co, you can compare the effects of market volatilities on Sinosteel Engineering and Kingclean Electric 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 Sinosteel Engineering with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Kingclean Electric.
Diversification Opportunities for Sinosteel Engineering and Kingclean Electric
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinosteel and Kingclean is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Kingclean Electric go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Kingclean Electric
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 0.52 times more return on investment than Kingclean Electric. However, Sinosteel Engineering and is 1.92 times less risky than Kingclean Electric. It trades about 0.29 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.1 per unit of risk. If you would invest 610.00 in Sinosteel Engineering and on November 7, 2024 and sell it today you would earn a total of 34.00 from holding Sinosteel Engineering and or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Kingclean Electric Co
Performance |
| Timeline |
| Sinosteel Engineering and |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingclean Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sinosteel Engineering and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Kingclean Electric
The main advantage of trading using opposite Sinosteel Engineering and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.The idea behind Sinosteel Engineering and and Kingclean Electric 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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