Correlation Between Khiron Life and Xiwang Special
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Xiwang Special 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 Khiron Life and Xiwang Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Xiwang Special Steel, you can compare the effects of market volatilities on Khiron Life and Xiwang Special 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 Khiron Life with a short position of Xiwang Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Xiwang Special.
Diversification Opportunities for Khiron Life and Xiwang Special
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Khiron and Xiwang is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Xiwang Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Special Steel and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Xiwang Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Special Steel has no effect on the direction of Khiron Life i.e., Khiron Life and Xiwang Special go up and down completely randomly.
Pair Corralation between Khiron Life and Xiwang Special
If you would invest 0.01 in Xiwang Special Steel on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Xiwang Special Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.75% |
| Values | Daily Returns |
Khiron Life Sciences vs. Xiwang Special Steel
Performance |
| Timeline |
| Khiron Life Sciences |
| Xiwang Special Steel |
Khiron Life and Xiwang Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Xiwang Special
The main advantage of trading using opposite Khiron Life and Xiwang Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Xiwang Special 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 Xiwang Special will offset losses from the drop in Xiwang Special's long position.| Khiron Life vs. CLEAN ENERGY FUELS | Khiron Life vs. Goosehead Insurance | Khiron Life vs. MCEWEN MINING INC | Khiron Life vs. GREENX METALS LTD |
| Xiwang Special vs. Nucor | Xiwang Special vs. Reliance Steel Aluminum | Xiwang Special vs. Superior Plus Corp | Xiwang Special vs. NMI Holdings |
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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