Correlation Between Grape King and Kung Long
Can any of the company-specific risk be diversified away by investing in both Grape King and Kung Long at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grape King and Kung Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grape King Bio and Kung Long Batteries, you can compare the effects of market volatilities on Grape King and Kung Long 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 Grape King with a short position of Kung Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grape King and Kung Long.
Diversification Opportunities for Grape King and Kung Long
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grape and Kung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grape King Bio and Kung Long Batteries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kung Long Batteries and Grape King 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 Grape King Bio are associated (or correlated) with Kung Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kung Long Batteries has no effect on the direction of Grape King i.e., Grape King and Kung Long go up and down completely randomly.
Pair Corralation between Grape King and Kung Long
If you would invest 0.00 in Grape King Bio on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Grape King Bio or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.67% |
| Values | Daily Returns |
Grape King Bio vs. Kung Long Batteries
Performance |
| Timeline |
| Grape King Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kung Long Batteries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Grape King and Kung Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grape King and Kung Long
The main advantage of trading using opposite Grape King and Kung Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grape King position performs unexpectedly, Kung Long 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 Kung Long will offset losses from the drop in Kung Long's long position.The idea behind Grape King Bio and Kung Long Batteries 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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