Correlation Between Aba Chemicals and Kingsignal Technology
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By analyzing existing cross correlation between Aba Chemicals Corp and Kingsignal Technology Co, you can compare the effects of market volatilities on Aba Chemicals and Kingsignal Technology 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 Aba Chemicals with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Kingsignal Technology.
Diversification Opportunities for Aba Chemicals and Kingsignal Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and Kingsignal is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Aba Chemicals and Kingsignal Technology
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Kingsignal Technology. In addition to that, Aba Chemicals is 1.05 times more volatile than Kingsignal Technology Co. It trades about -0.17 of its total potential returns per unit of risk. Kingsignal Technology Co is currently generating about -0.02 per unit of volatility. If you would invest 1,007 in Kingsignal Technology Co on September 13, 2024 and sell it today you would lose (17.00) from holding Kingsignal Technology Co or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Kingsignal Technology Co
Performance |
| Timeline |
| Aba Chemicals Corp |
| Kingsignal Technology |
Aba Chemicals and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Kingsignal Technology
The main advantage of trading using opposite Aba Chemicals and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Aba Chemicals vs. Changchun Faway Automobile | Aba Chemicals vs. Zhongyin Babi Food | Aba Chemicals vs. Jiangsu Financial Leasing | Aba Chemicals vs. Xiangyang Automobile Bearing |
| Kingsignal Technology vs. Industrial and Commercial | Kingsignal Technology vs. China Construction Bank | Kingsignal Technology vs. Bank of China | Kingsignal Technology vs. Agricultural Bank of |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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