Correlation Between King Strong and Advanced Technology
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By analyzing existing cross correlation between King Strong New Material and Advanced Technology Materials, you can compare the effects of market volatilities on King Strong and Advanced 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 King Strong with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Advanced Technology.
Diversification Opportunities for King Strong and Advanced Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Advanced is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and King Strong 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 King Strong New Material are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of King Strong i.e., King Strong and Advanced Technology go up and down completely randomly.
Pair Corralation between King Strong and Advanced Technology
Assuming the 90 days trading horizon King Strong is expected to generate 1.06 times less return on investment than Advanced Technology. In addition to that, King Strong is 1.3 times more volatile than Advanced Technology Materials. It trades about 0.03 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.04 per unit of volatility. If you would invest 948.00 in Advanced Technology Materials on September 4, 2024 and sell it today you would earn a total of 289.00 from holding Advanced Technology Materials or generate 30.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Advanced Technology Materials
Performance |
| Timeline |
| King Strong New |
| Advanced Technology |
King Strong and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Advanced Technology
The main advantage of trading using opposite King Strong and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Advanced 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| King Strong vs. Anhui Deli Household | King Strong vs. Jiujiang Shanshui Technology | King Strong vs. Sunwave Communications Co | King Strong vs. China Satellite Communications |
| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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