Correlation Between King-Strong New and Malion New
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By analyzing existing cross correlation between King Strong New Material and Malion New Materials, you can compare the effects of market volatilities on King-Strong New and Malion New 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 New with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of King-Strong New and Malion New.
Diversification Opportunities for King-Strong New and Malion New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King-Strong and Malion is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials and King-Strong New 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of King-Strong New i.e., King-Strong New and Malion New go up and down completely randomly.
Pair Corralation between King-Strong New and Malion New
Assuming the 90 days trading horizon King-Strong New is expected to generate 1.94 times less return on investment than Malion New. But when comparing it to its historical volatility, King Strong New Material is 1.19 times less risky than Malion New. It trades about 0.12 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% 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. Malion New Materials
Performance |
| Timeline |
| King Strong New |
| Malion New Materials |
King-Strong New and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King-Strong New and Malion New
The main advantage of trading using opposite King-Strong New and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King-Strong New position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| King-Strong New vs. Tianjin Silvery Dragon | King-Strong New vs. Western Metal Materials | King-Strong New vs. Hangzhou Gaoxin Rubber | King-Strong New vs. Fuda Alloy Materials |
| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
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 Stocks Directory module to find actively traded stocks across global markets.
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