Correlation Between King Strong and Shaanxi Broadcast
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By analyzing existing cross correlation between King Strong New Material and Shaanxi Broadcast TV, you can compare the effects of market volatilities on King Strong and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Shaanxi Broadcast.
Diversification Opportunities for King Strong and Shaanxi Broadcast
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Shaanxi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of King Strong i.e., King Strong and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between King Strong and Shaanxi Broadcast
Assuming the 90 days trading horizon King Strong is expected to generate 1.09 times less return on investment than Shaanxi Broadcast. In addition to that, King Strong is 1.43 times more volatile than Shaanxi Broadcast TV. It trades about 0.04 of its total potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.07 per unit of volatility. If you would invest 260.00 in Shaanxi Broadcast TV on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Shaanxi Broadcast TV or generate 3.85% 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. Shaanxi Broadcast TV
Performance |
| Timeline |
| King Strong New |
| Shaanxi Broadcast |
King Strong and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Shaanxi Broadcast
The main advantage of trading using opposite King Strong and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| King Strong vs. PetroChina Co Ltd | King Strong vs. China State Construction | King Strong vs. China Mobile Limited | King Strong vs. Industrial and Commercial |
| Shaanxi Broadcast vs. Industrial and Commercial | Shaanxi Broadcast vs. Agricultural Bank of | Shaanxi Broadcast vs. China Construction Bank | Shaanxi Broadcast vs. Bank of 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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