Correlation Between Kingstate Electronics and Oriental Union
Can any of the company-specific risk be diversified away by investing in both Kingstate Electronics and Oriental Union 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 Oriental Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingstate Electronics and Oriental Union Chemical, you can compare the effects of market volatilities on Kingstate Electronics and Oriental Union 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 Oriental Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingstate Electronics and Oriental Union.
Diversification Opportunities for Kingstate Electronics and Oriental Union
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingstate and Oriental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingstate Electronics and Oriental Union Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Union Chemical 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 Oriental Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Union Chemical has no effect on the direction of Kingstate Electronics i.e., Kingstate Electronics and Oriental Union go up and down completely randomly.
Pair Corralation between Kingstate Electronics and Oriental Union
If you would invest 1,440 in Oriental Union Chemical on October 22, 2024 and sell it today you would earn a total of 50.00 from holding Oriental Union Chemical or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kingstate Electronics vs. Oriental Union Chemical
Performance |
| Timeline |
| Kingstate Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oriental Union Chemical |
Kingstate Electronics and Oriental Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingstate Electronics and Oriental Union
The main advantage of trading using opposite Kingstate Electronics and Oriental Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingstate Electronics position performs unexpectedly, Oriental Union 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 Oriental Union will offset losses from the drop in Oriental Union's long position.| Kingstate Electronics vs. Arbor Technology | Kingstate Electronics vs. AzureWave Technologies | Kingstate Electronics vs. U Media Communications | Kingstate Electronics vs. Chailease Holding Co |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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