Correlation Between Shanghai National and Kingclean Electric
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By analyzing existing cross correlation between Shanghai National Center and Kingclean Electric Co, you can compare the effects of market volatilities on Shanghai National 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 Shanghai National with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai National and Kingclean Electric.
Diversification Opportunities for Shanghai National and Kingclean Electric
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Kingclean is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai National Center and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Shanghai National 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 Shanghai National Center 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 Shanghai National i.e., Shanghai National and Kingclean Electric go up and down completely randomly.
Pair Corralation between Shanghai National and Kingclean Electric
Assuming the 90 days trading horizon Shanghai National Center is expected to generate 2.88 times more return on investment than Kingclean Electric. However, Shanghai National is 2.88 times more volatile than Kingclean Electric Co. It trades about 0.16 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.2 per unit of risk. If you would invest 4,700 in Shanghai National Center on August 27, 2024 and sell it today you would earn a total of 779.00 from holding Shanghai National Center or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai National Center vs. Kingclean Electric Co
Performance |
| Timeline |
| Shanghai National Center |
| Kingclean Electric |
Shanghai National and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai National and Kingclean Electric
The main advantage of trading using opposite Shanghai National and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai National 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.| Shanghai National vs. Kingclean Electric Co | Shanghai National vs. Shanghai Zhangjiang Hi Tech | Shanghai National vs. Dhc Software Co | Shanghai National vs. Guangdong Shenglu Telecommunication |
| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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