Correlation Between Shantou Wanshun and King Strong
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By analyzing existing cross correlation between Shantou Wanshun Package and King Strong New Material, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and King Strong.
Diversification Opportunities for Shantou Wanshun and King Strong
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantou and King is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and King Strong go up and down completely randomly.
Pair Corralation between Shantou Wanshun and King Strong
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the King Strong. In addition to that, Shantou Wanshun is 1.01 times more volatile than King Strong New Material. It trades about -0.04 of its total potential returns per unit of risk. King Strong New Material is currently generating about 0.01 per unit of volatility. If you would invest 2,065 in King Strong New Material on October 18, 2024 and sell it today you would lose (65.00) from holding King Strong New Material or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shantou Wanshun Package vs. King Strong New Material
Performance |
| Timeline |
| Shantou Wanshun Package |
| King Strong New |
Shantou Wanshun and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and King Strong
The main advantage of trading using opposite Shantou Wanshun and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. China Mobile Limited | Shantou Wanshun vs. Tongyu Communication | Shantou Wanshun vs. Fibocom Wireless | Shantou Wanshun vs. Sinomach Automobile Co |
| King Strong vs. Shandong Sinoglory Health | King Strong vs. Shantou Wanshun Package | King Strong vs. Goodwill E Health | King Strong vs. Sanbo Hospital Management |
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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