Correlation Between Shaanxi Meineng and Kingclean Electric
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Kingclean Electric Co, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Kingclean Electric.
Diversification Opportunities for Shaanxi Meineng and Kingclean Electric
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Kingclean is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Kingclean Electric go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Kingclean Electric
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.45 times more return on investment than Kingclean Electric. However, Shaanxi Meineng is 1.45 times more volatile than Kingclean Electric Co. It trades about -0.07 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.11 per unit of risk. If you would invest 1,435 in Shaanxi Meineng Clean on September 13, 2024 and sell it today you would lose (54.00) from holding Shaanxi Meineng Clean or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Kingclean Electric Co
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Kingclean Electric |
Shaanxi Meineng and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Kingclean Electric
The main advantage of trading using opposite Shaanxi Meineng and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Innovative Medical Management | Shaanxi Meineng vs. Cowealth Medical China | Shaanxi Meineng vs. Zhongzhu Medical Holdings | Shaanxi Meineng vs. Touchstone International Medical |
| Kingclean Electric vs. Chengdu Kanghua Biological | Kingclean Electric vs. Beijing Wantai Biological | Kingclean Electric vs. Suzhou Novoprotein Scientific | Kingclean Electric vs. Aluminum Corp of |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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