Correlation Between Kidswant Children and Hengli Industrial
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By analyzing existing cross correlation between Kidswant Children Products and Hengli Industrial Development, you can compare the effects of market volatilities on Kidswant Children and Hengli Industrial 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 Kidswant Children with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidswant Children and Hengli Industrial.
Diversification Opportunities for Kidswant Children and Hengli Industrial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kidswant and Hengli is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kidswant Children Products and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Kidswant Children 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 Kidswant Children Products are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Kidswant Children i.e., Kidswant Children and Hengli Industrial go up and down completely randomly.
Pair Corralation between Kidswant Children and Hengli Industrial
Assuming the 90 days trading horizon Kidswant Children Products is expected to generate 1.17 times more return on investment than Hengli Industrial. However, Kidswant Children is 1.17 times more volatile than Hengli Industrial Development. It trades about 0.32 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.2 per unit of risk. If you would invest 1,086 in Kidswant Children Products on November 6, 2024 and sell it today you would earn a total of 195.00 from holding Kidswant Children Products or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kidswant Children Products vs. Hengli Industrial Development
Performance |
| Timeline |
| Kidswant Children |
| Hengli Industrial |
Kidswant Children and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidswant Children and Hengli Industrial
The main advantage of trading using opposite Kidswant Children and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidswant Children position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Kidswant Children vs. Guangzhou Automobile Group | Kidswant Children vs. Changchun Engley Automobile | Kidswant Children vs. Zhengzhou Coal Mining | Kidswant Children vs. Bosera CMSK Industrial |
| Hengli Industrial vs. Jinhe Biotechnology Co | Hengli Industrial vs. GreenTech Environmental Co | Hengli Industrial vs. Holitech Technology Co | Hengli Industrial vs. Kangping Technology 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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