Correlation Between King Strong and Topsec Technologies
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By analyzing existing cross correlation between King Strong New Material and Topsec Technologies Group, you can compare the effects of market volatilities on King Strong and Topsec Technologies 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 Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Topsec Technologies.
Diversification Opportunities for King Strong and Topsec Technologies
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Topsec is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies 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 Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of King Strong i.e., King Strong and Topsec Technologies go up and down completely randomly.
Pair Corralation between King Strong and Topsec Technologies
Assuming the 90 days trading horizon King Strong New Material is expected to generate 1.69 times more return on investment than Topsec Technologies. However, King Strong is 1.69 times more volatile than Topsec Technologies Group. It trades about 0.16 of its potential returns per unit of risk. Topsec Technologies Group is currently generating about 0.1 per unit of risk. If you would invest 2,078 in King Strong New Material on September 4, 2024 and sell it today you would earn a total of 324.00 from holding King Strong New Material or generate 15.59% 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. Topsec Technologies Group
Performance |
| Timeline |
| King Strong New |
| Topsec Technologies |
King Strong and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Topsec Technologies
The main advantage of trading using opposite King Strong and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Topsec Technologies 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 Topsec Technologies will offset losses from the drop in Topsec Technologies' 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 |
| Topsec Technologies vs. HanS Laser Tech | Topsec Technologies vs. Hangzhou Gaoxin Rubber | Topsec Technologies vs. Jinsanjiang Silicon Material | Topsec Technologies vs. King Strong New Material |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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