Correlation Between Kingstate Electronics and Chiu Ting
Can any of the company-specific risk be diversified away by investing in both Kingstate Electronics and Chiu Ting at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kingstate Electronics and Chiu Ting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingstate Electronics and Chiu Ting Machinery, you can compare the effects of market volatilities on Kingstate Electronics and Chiu Ting 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 Kingstate Electronics with a short position of Chiu Ting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingstate Electronics and Chiu Ting.
Diversification Opportunities for Kingstate Electronics and Chiu Ting
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingstate and Chiu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kingstate Electronics and Chiu Ting Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiu Ting Machinery and Kingstate Electronics 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 Kingstate Electronics are associated (or correlated) with Chiu Ting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiu Ting Machinery has no effect on the direction of Kingstate Electronics i.e., Kingstate Electronics and Chiu Ting go up and down completely randomly.
Pair Corralation between Kingstate Electronics and Chiu Ting
Assuming the 90 days trading horizon Kingstate Electronics is expected to generate 3.45 times less return on investment than Chiu Ting. But when comparing it to its historical volatility, Kingstate Electronics is 4.0 times less risky than Chiu Ting. It trades about 0.3 of its potential returns per unit of risk. Chiu Ting Machinery is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,185 in Chiu Ting Machinery on November 29, 2024 and sell it today you would earn a total of 300.00 from holding Chiu Ting Machinery or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingstate Electronics vs. Chiu Ting Machinery
Performance |
| Timeline |
| Kingstate Electronics |
| Chiu Ting Machinery |
Kingstate Electronics and Chiu Ting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingstate Electronics and Chiu Ting
The main advantage of trading using opposite Kingstate Electronics and Chiu Ting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingstate Electronics position performs unexpectedly, Chiu Ting 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 Chiu Ting will offset losses from the drop in Chiu Ting's long position.| Kingstate Electronics vs. Dadi Early Childhood Education | Kingstate Electronics vs. GameSparcs Co | Kingstate Electronics vs. Ibase Gaming | Kingstate Electronics vs. International CSRC Investment |
| Chiu Ting vs. Chang Type Industrial | Chiu Ting vs. Anderson Industrial Corp | Chiu Ting vs. Klingon Aerospace | Chiu Ting vs. Basso Industry Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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