Correlation Between King Strong and Xinke Material
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By analyzing existing cross correlation between King Strong New Material and Xinke Material, you can compare the effects of market volatilities on King Strong and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Xinke Material.
Diversification Opportunities for King Strong and Xinke Material
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Xinke is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of King Strong i.e., King Strong and Xinke Material go up and down completely randomly.
Pair Corralation between King Strong and Xinke Material
Assuming the 90 days trading horizon King Strong is expected to generate 1.07 times less return on investment than Xinke Material. In addition to that, King Strong is 1.19 times more volatile than Xinke Material. It trades about 0.03 of its total potential returns per unit of risk. Xinke Material is currently generating about 0.04 per unit of volatility. If you would invest 206.00 in Xinke Material on September 12, 2024 and sell it today you would earn a total of 67.00 from holding Xinke Material or generate 32.52% 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. Xinke Material
Performance |
| Timeline |
| King Strong New |
| Xinke Material |
King Strong and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Xinke Material
The main advantage of trading using opposite King Strong and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material's long position.| King Strong vs. Agricultural Bank of | King Strong vs. Industrial and Commercial | King Strong vs. Bank of China | King Strong vs. PetroChina Co Ltd |
| Xinke Material vs. Zijin Mining Group | Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Baoshan Iron Steel | Xinke Material vs. Rongsheng Petrochemical Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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