Correlation Between King-Strong New and Ningxia Building
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By analyzing existing cross correlation between King Strong New Material and Ningxia Building Materials, you can compare the effects of market volatilities on King-Strong New and Ningxia Building 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 Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of King-Strong New and Ningxia Building.
Diversification Opportunities for King-Strong New and Ningxia Building
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King-Strong and Ningxia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat 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 Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of King-Strong New i.e., King-Strong New and Ningxia Building go up and down completely randomly.
Pair Corralation between King-Strong New and Ningxia Building
Assuming the 90 days trading horizon King Strong New Material is expected to generate 1.74 times more return on investment than Ningxia Building. However, King-Strong New is 1.74 times more volatile than Ningxia Building Materials. It trades about 0.12 of its potential returns per unit of risk. Ningxia Building Materials is currently generating about 0.07 per unit of risk. If you would invest 2,152 in King Strong New Material on September 1, 2024 and sell it today you would earn a total of 228.00 from holding King Strong New Material or generate 10.59% 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. Ningxia Building Materials
Performance |
| Timeline |
| King Strong New |
| Ningxia Building Mat |
King-Strong New and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King-Strong New and Ningxia Building
The main advantage of trading using opposite King-Strong New and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King-Strong New position performs unexpectedly, Ningxia Building 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 Ningxia Building will offset losses from the drop in Ningxia Building'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 |
| Ningxia Building vs. Jiangxi Naipu Mining | Ningxia Building vs. Allmed Medical Products | Ningxia Building vs. Minmetals Capital Co | Ningxia Building vs. Cowealth Medical China |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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