Correlation Between King Strong and Western Metal
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By analyzing existing cross correlation between King Strong New Material and Western Metal Materials, you can compare the effects of market volatilities on King Strong and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Western Metal.
Diversification Opportunities for King Strong and Western Metal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between King and Western is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of King Strong i.e., King Strong and Western Metal go up and down completely randomly.
Pair Corralation between King Strong and Western Metal
Assuming the 90 days trading horizon King Strong New Material is expected to under-perform the Western Metal. But the stock apears to be less risky and, when comparing its historical volatility, King Strong New Material is 1.11 times less risky than Western Metal. The stock trades about -0.02 of its potential returns per unit of risk. The Western Metal Materials is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,643 in Western Metal Materials on September 28, 2024 and sell it today you would earn a total of 157.00 from holding Western Metal Materials or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Western Metal Materials
Performance |
| Timeline |
| King Strong New |
| Western Metal Materials |
King Strong and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Western Metal
The main advantage of trading using opposite King Strong and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| King Strong vs. Bank of China | King Strong vs. Kweichow Moutai Co | King Strong vs. PetroChina Co Ltd | King Strong vs. Bank of Communications |
| Western Metal vs. Guangzhou Tinci Materials | Western Metal vs. King Strong New Material | Western Metal vs. Circuit Fabology Microelectronics | Western Metal vs. Hangzhou Gaoxin Rubber |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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