Correlation Between Kindom Construction and Hung Ching
Can any of the company-specific risk be diversified away by investing in both Kindom Construction and Hung Ching 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 Kindom Construction and Hung Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kindom Construction Corp and Hung Ching Development, you can compare the effects of market volatilities on Kindom Construction and Hung Ching 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 Kindom Construction with a short position of Hung Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kindom Construction and Hung Ching.
Diversification Opportunities for Kindom Construction and Hung Ching
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kindom and Hung is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kindom Construction Corp and Hung Ching Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Ching Development and Kindom Construction 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 Kindom Construction Corp are associated (or correlated) with Hung Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Ching Development has no effect on the direction of Kindom Construction i.e., Kindom Construction and Hung Ching go up and down completely randomly.
Pair Corralation between Kindom Construction and Hung Ching
Assuming the 90 days trading horizon Kindom Construction Corp is expected to generate 0.9 times more return on investment than Hung Ching. However, Kindom Construction Corp is 1.11 times less risky than Hung Ching. It trades about 0.67 of its potential returns per unit of risk. Hung Ching Development is currently generating about 0.45 per unit of risk. If you would invest 4,670 in Kindom Construction Corp on September 5, 2024 and sell it today you would earn a total of 1,300 from holding Kindom Construction Corp or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kindom Construction Corp vs. Hung Ching Development
Performance |
| Timeline |
| Kindom Construction Corp |
| Hung Ching Development |
Kindom Construction and Hung Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kindom Construction and Hung Ching
The main advantage of trading using opposite Kindom Construction and Hung Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kindom Construction position performs unexpectedly, Hung Ching 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 Hung Ching will offset losses from the drop in Hung Ching's long position.| Kindom Construction vs. Highwealth Construction Corp | Kindom Construction vs. Cathay Real Estate | Kindom Construction vs. Huaku Development Co | Kindom Construction vs. Hung Sheng Construction |
| Hung Ching vs. Huaku Development Co | Hung Ching vs. Ruentex Development Co | Hung Ching vs. Taiwan Cement Corp | Hung Ching vs. Symtek Automation Asia |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |