Correlation Between Kingsignal Technology and Eastern Communications
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By analyzing existing cross correlation between Kingsignal Technology Co and Eastern Communications Co, you can compare the effects of market volatilities on Kingsignal Technology and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Eastern Communications.
Diversification Opportunities for Kingsignal Technology and Eastern Communications
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kingsignal and Eastern is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Kingsignal Technology i.e., Kingsignal Technology and Eastern Communications go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Eastern Communications
Assuming the 90 days trading horizon Kingsignal Technology Co is expected to under-perform the Eastern Communications. In addition to that, Kingsignal Technology is 1.45 times more volatile than Eastern Communications Co. It trades about -0.01 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about 0.05 per unit of volatility. If you would invest 42.00 in Eastern Communications Co on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Eastern Communications Co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Eastern Communications Co
Performance |
| Timeline |
| Kingsignal Technology |
| Eastern Communications |
Kingsignal Technology and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Eastern Communications
The main advantage of trading using opposite Kingsignal Technology and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Kingsignal Technology vs. Sinofibers Technology Co | Kingsignal Technology vs. Tianshui Huatian Technology | Kingsignal Technology vs. Hainan Mining Co | Kingsignal Technology vs. Linewell Software Co |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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