Correlation Between King Strong and Cultural Investment
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By analyzing existing cross correlation between King Strong New Material and Cultural Investment Holdings, you can compare the effects of market volatilities on King Strong and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Cultural Investment.
Diversification Opportunities for King Strong and Cultural Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between King and Cultural is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of King Strong i.e., King Strong and Cultural Investment go up and down completely randomly.
Pair Corralation between King Strong and Cultural Investment
Assuming the 90 days trading horizon King Strong New Material is expected to generate 0.76 times more return on investment than Cultural Investment. However, King Strong New Material is 1.32 times less risky than Cultural Investment. It trades about 0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.01 per unit of risk. If you would invest 2,156 in King Strong New Material on September 4, 2024 and sell it today you would earn a total of 246.00 from holding King Strong New Material or generate 11.41% 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. Cultural Investment Holdings
Performance |
| Timeline |
| King Strong New |
| Cultural Investment |
King Strong and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Cultural Investment
The main advantage of trading using opposite King Strong and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's 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 |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
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 CEOs Directory module to screen CEOs from public companies around the world.
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