Correlation Between King Strong and China Citic
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By analyzing existing cross correlation between King Strong New Material and China Citic Bank, you can compare the effects of market volatilities on King Strong and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and China Citic.
Diversification Opportunities for King Strong and China Citic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between King and China is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of King Strong i.e., King Strong and China Citic go up and down completely randomly.
Pair Corralation between King Strong and China Citic
Assuming the 90 days trading horizon King Strong New Material is expected to under-perform the China Citic. In addition to that, King Strong is 2.13 times more volatile than China Citic Bank. It trades about -0.21 of its total potential returns per unit of risk. China Citic Bank is currently generating about -0.24 per unit of volatility. If you would invest 694.00 in China Citic Bank on October 28, 2024 and sell it today you would lose (41.00) from holding China Citic Bank or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. China Citic Bank
Performance |
| Timeline |
| King Strong New |
| China Citic Bank |
King Strong and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and China Citic
The main advantage of trading using opposite King Strong and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| King Strong vs. Industrial and Commercial | King Strong vs. China Construction Bank | King Strong vs. Agricultural Bank of | King Strong vs. Bank of China |
| China Citic vs. Guangzhou Automobile Group | China Citic vs. Beijing Sanyuan Foods | China Citic vs. Chongqing Changan Automobile | China Citic vs. Songz Automobile Air |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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