Correlation Between Aba Chemicals and Kidswant Children
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By analyzing existing cross correlation between Aba Chemicals Corp and Kidswant Children Products, you can compare the effects of market volatilities on Aba Chemicals and Kidswant Children 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 Kidswant Children. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Kidswant Children.
Diversification Opportunities for Aba Chemicals and Kidswant Children
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aba and Kidswant is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Kidswant Children Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidswant Children 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 Kidswant Children. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidswant Children has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Kidswant Children go up and down completely randomly.
Pair Corralation between Aba Chemicals and Kidswant Children
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Kidswant Children. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.35 times less risky than Kidswant Children. The stock trades about -0.1 of its potential returns per unit of risk. The Kidswant Children Products is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,070 in Kidswant Children Products on November 4, 2024 and sell it today you would earn a total of 211.00 from holding Kidswant Children Products or generate 19.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Kidswant Children Products
Performance |
| Timeline |
| Aba Chemicals Corp |
| Kidswant Children |
Aba Chemicals and Kidswant Children Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Kidswant Children
The main advantage of trading using opposite Aba Chemicals and Kidswant Children positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Kidswant Children 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 Kidswant Children will offset losses from the drop in Kidswant Children's long position.| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Eyebright Medical Technology | Aba Chemicals vs. China Sports Industry | Aba Chemicals vs. Fujian Newland Computer |
| Kidswant Children vs. HUAQIN TECHNOLOGY LTD | Kidswant Children vs. Linewell Software Co | Kidswant Children vs. Shanghai Ziyan Foods | Kidswant Children vs. Jiajia Food Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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