Correlation Between Kidswant Children and Ningbo Jintian
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By analyzing existing cross correlation between Kidswant Children Products and Ningbo Jintian Copper, you can compare the effects of market volatilities on Kidswant Children and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidswant Children and Ningbo Jintian.
Diversification Opportunities for Kidswant Children and Ningbo Jintian
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kidswant and Ningbo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kidswant Children Products and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Kidswant Children i.e., Kidswant Children and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Kidswant Children and Ningbo Jintian
Assuming the 90 days trading horizon Kidswant Children Products is expected to generate 2.44 times more return on investment than Ningbo Jintian. However, Kidswant Children is 2.44 times more volatile than Ningbo Jintian Copper. It trades about 0.32 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.29 per unit of risk. If you would invest 1,086 in Kidswant Children Products on November 7, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kidswant Children Products vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Kidswant Children |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Ningbo Jintian Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Kidswant Children and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidswant Children and Ningbo Jintian
The main advantage of trading using opposite Kidswant Children and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidswant Children position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.The idea behind Kidswant Children Products and Ningbo Jintian Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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