Correlation Between Ningbo Homelink and Kingclean Electric
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Kingclean Electric Co, you can compare the effects of market volatilities on Ningbo Homelink and Kingclean Electric 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 Ningbo Homelink with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Kingclean Electric.
Diversification Opportunities for Ningbo Homelink and Kingclean Electric
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Kingclean is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Ningbo Homelink 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 Ningbo Homelink Eco iTech are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Kingclean Electric go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Kingclean Electric
Assuming the 90 days trading horizon Ningbo Homelink is expected to generate 1.37 times less return on investment than Kingclean Electric. In addition to that, Ningbo Homelink is 1.38 times more volatile than Kingclean Electric Co. It trades about 0.01 of its total potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.03 per unit of volatility. If you would invest 2,178 in Kingclean Electric Co on September 14, 2024 and sell it today you would earn a total of 172.00 from holding Kingclean Electric Co or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Kingclean Electric Co
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Kingclean Electric |
Ningbo Homelink and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Kingclean Electric
The main advantage of trading using opposite Ningbo Homelink and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Ningbo Homelink vs. Jahen Household Products | Ningbo Homelink vs. Sichuan Yahua Industrial | Ningbo Homelink vs. Gansu Yasheng Industrial | Ningbo Homelink vs. China Nonferrous Metal |
| Kingclean Electric vs. Anji Foodstuff Co | Kingclean Electric vs. Great Sun Foods Co | Kingclean Electric vs. Beijing Yanjing Brewery | Kingclean Electric vs. Eastroc Beverage Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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