Correlation Between Kingsignal Technology and Changchun High
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By analyzing existing cross correlation between Kingsignal Technology Co and Changchun High New, you can compare the effects of market volatilities on Kingsignal Technology and Changchun High 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 Kingsignal Technology with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Changchun High.
Diversification Opportunities for Kingsignal Technology and Changchun High
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kingsignal and Changchun is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Kingsignal Technology 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 Kingsignal Technology Co are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Kingsignal Technology i.e., Kingsignal Technology and Changchun High go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Changchun High
Assuming the 90 days trading horizon Kingsignal Technology Co is expected to under-perform the Changchun High. In addition to that, Kingsignal Technology is 3.66 times more volatile than Changchun High New. It trades about -0.07 of its total potential returns per unit of risk. Changchun High New is currently generating about -0.13 per unit of volatility. If you would invest 10,181 in Changchun High New on November 30, 2024 and sell it today you would lose (683.00) from holding Changchun High New or give up 6.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Changchun High New
Performance |
| Timeline |
| Kingsignal Technology |
| Changchun High New |
Kingsignal Technology and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Changchun High
The main advantage of trading using opposite Kingsignal Technology and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.The idea behind Kingsignal Technology Co and Changchun High New 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.
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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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