Correlation Between Shanghai Yaoji and Kingclean Electric
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Kingclean Electric Co, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Kingclean Electric.
Diversification Opportunities for Shanghai Yaoji and Kingclean Electric
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Kingclean is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Kingclean Electric go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Kingclean Electric
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.79 times more return on investment than Kingclean Electric. However, Shanghai Yaoji is 1.79 times more volatile than Kingclean Electric Co. It trades about 0.21 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 2,459 in Shanghai Yaoji Playing on November 7, 2024 and sell it today you would earn a total of 338.00 from holding Shanghai Yaoji Playing or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Kingclean Electric Co
Performance |
| Timeline |
| Shanghai Yaoji Playing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Kingclean Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shanghai Yaoji and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Kingclean Electric
The main advantage of trading using opposite Shanghai Yaoji and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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