Correlation Between Shandong Mining and Kingsignal Technology
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By analyzing existing cross correlation between Shandong Mining Machinery and Kingsignal Technology Co, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Kingsignal Technology.
Diversification Opportunities for Shandong Mining and Kingsignal Technology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Kingsignal is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Shandong Mining and Kingsignal Technology
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.85 times more return on investment than Kingsignal Technology. However, Shandong Mining Machinery is 1.17 times less risky than Kingsignal Technology. It trades about 0.17 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.1 per unit of risk. If you would invest 252.00 in Shandong Mining Machinery on September 13, 2024 and sell it today you would earn a total of 256.00 from holding Shandong Mining Machinery or generate 101.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Kingsignal Technology Co
Performance |
| Timeline |
| Shandong Mining Machinery |
| Kingsignal Technology |
Shandong Mining and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Kingsignal Technology
The main advantage of trading using opposite Shandong Mining and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. China Petroleum Chemical | Shandong Mining vs. PetroChina Co Ltd | Shandong Mining vs. China State Construction | Shandong Mining vs. China Railway Group |
| Kingsignal Technology vs. Industrial and Commercial | Kingsignal Technology vs. China Construction Bank | Kingsignal Technology vs. Bank of China | Kingsignal Technology vs. Agricultural Bank 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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