Correlation Between Kingsignal Technology and Hubei Forbon
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By analyzing existing cross correlation between Kingsignal Technology Co and Hubei Forbon Technology, you can compare the effects of market volatilities on Kingsignal Technology and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Hubei Forbon.
Diversification Opportunities for Kingsignal Technology and Hubei Forbon
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kingsignal and Hubei is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Kingsignal Technology i.e., Kingsignal Technology and Hubei Forbon go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Hubei Forbon
Assuming the 90 days trading horizon Kingsignal Technology Co is expected to generate 2.13 times more return on investment than Hubei Forbon. However, Kingsignal Technology is 2.13 times more volatile than Hubei Forbon Technology. It trades about 0.04 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about -0.06 per unit of risk. If you would invest 914.00 in Kingsignal Technology Co on October 30, 2024 and sell it today you would earn a total of 26.00 from holding Kingsignal Technology Co or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Hubei Forbon Technology
Performance |
| Timeline |
| Kingsignal Technology |
| Hubei Forbon Technology |
Kingsignal Technology and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Hubei Forbon
The main advantage of trading using opposite Kingsignal Technology and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Kingsignal Technology vs. Ligao Foods CoLtd | Kingsignal Technology vs. Xinjiang Tianrun Dairy | Kingsignal Technology vs. Nanya New Material | Kingsignal Technology vs. V V Food |
| Hubei Forbon vs. Maoming Petro Chemical Shihua | Hubei Forbon vs. Guocheng Mining Co | Hubei Forbon vs. Ningbo Jintian Copper | Hubei Forbon vs. Rising Nonferrous Metals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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