Correlation Between 159005 and King Strong
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By analyzing existing cross correlation between 159005 and King Strong New Material, you can compare the effects of market volatilities on 159005 and King Strong 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 159005 with a short position of King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and King Strong.
Diversification Opportunities for 159005 and King Strong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and King is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New and 159005 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 159005 are associated (or correlated) with King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of 159005 i.e., 159005 and King Strong go up and down completely randomly.
Pair Corralation between 159005 and King Strong
Assuming the 90 days trading horizon 159005 is expected to generate 104.09 times less return on investment than King Strong. But when comparing it to its historical volatility, 159005 is 141.66 times less risky than King Strong. It trades about 0.22 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,918 in King Strong New Material on September 13, 2024 and sell it today you would earn a total of 495.00 from holding King Strong New Material or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. King Strong New Material
Performance |
| Timeline |
| 159005 |
| King Strong New |
159005 and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and King Strong
The main advantage of trading using opposite 159005 and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.The idea behind 159005 and King Strong New Material 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.| King Strong vs. Ming Yang Smart | King Strong vs. 159681 | King Strong vs. 159005 | King Strong vs. Loctek Ergonomic 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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