Correlation Between Guilin Seamild and Kingclean Electric
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By analyzing existing cross correlation between Guilin Seamild Foods and Kingclean Electric Co, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Kingclean Electric.
Diversification Opportunities for Guilin Seamild and Kingclean Electric
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guilin and Kingclean is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Kingclean Electric go up and down completely randomly.
Pair Corralation between Guilin Seamild and Kingclean Electric
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.38 times more return on investment than Kingclean Electric. However, Guilin Seamild is 1.38 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 0.05 per unit of risk. If you would invest 1,312 in Guilin Seamild Foods on November 3, 2024 and sell it today you would earn a total of 264.00 from holding Guilin Seamild Foods or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Kingclean Electric Co
Performance |
| Timeline |
| Guilin Seamild Foods |
| Kingclean Electric |
Guilin Seamild and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Kingclean Electric
The main advantage of trading using opposite Guilin Seamild and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Beijing Enlight Media | Guilin Seamild vs. Simei Media Co | Guilin Seamild vs. Guangzhou Jinyi Media | Guilin Seamild vs. Kingclean Electric Co |
| Kingclean Electric vs. APT Medical | Kingclean Electric vs. BrightGene Bio Medical | Kingclean Electric vs. Allmed Medical Products | Kingclean Electric vs. Allgens Medical Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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