Correlation Between Kingsignal Technology and Wuxi Chemical
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By analyzing existing cross correlation between Kingsignal Technology Co and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Kingsignal Technology and Wuxi Chemical 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 Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Wuxi Chemical.
Diversification Opportunities for Kingsignal Technology and Wuxi Chemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsignal and Wuxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment 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 Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Kingsignal Technology i.e., Kingsignal Technology and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Wuxi Chemical
Assuming the 90 days trading horizon Kingsignal Technology Co is expected to under-perform the Wuxi Chemical. In addition to that, Kingsignal Technology is 1.18 times more volatile than Wuxi Chemical Equipment. It trades about -0.11 of its total potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about 0.1 per unit of volatility. If you would invest 3,442 in Wuxi Chemical Equipment on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Wuxi Chemical Equipment or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Kingsignal Technology |
| Wuxi Chemical Equipment |
Kingsignal Technology and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Wuxi Chemical
The main advantage of trading using opposite Kingsignal Technology and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Kingsignal Technology vs. Gansu Jiu Steel | Kingsignal Technology vs. Shandong Mining Machinery | Kingsignal Technology vs. Aba Chemicals Corp | Kingsignal Technology vs. BlueFocus Communication Group |
| Wuxi Chemical vs. Kingsignal Technology Co | Wuxi Chemical vs. Southchip Semiconductor Technology | Wuxi Chemical vs. Shandong Publishing Media | Wuxi Chemical vs. Union Semiconductor Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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