Correlation Between Vate Technology and King Chou
Can any of the company-specific risk be diversified away by investing in both Vate Technology and King Chou 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 Vate Technology and King Chou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vate Technology Co and King Chou Marine, you can compare the effects of market volatilities on Vate Technology and King Chou 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 Vate Technology with a short position of King Chou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vate Technology and King Chou.
Diversification Opportunities for Vate Technology and King Chou
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vate and King is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vate Technology Co and King Chou Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Chou Marine and Vate Technology 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 Vate Technology Co are associated (or correlated) with King Chou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Chou Marine has no effect on the direction of Vate Technology i.e., Vate Technology and King Chou go up and down completely randomly.
Pair Corralation between Vate Technology and King Chou
Assuming the 90 days trading horizon Vate Technology Co is expected to under-perform the King Chou. In addition to that, Vate Technology is 7.35 times more volatile than King Chou Marine. It trades about -0.06 of its total potential returns per unit of risk. King Chou Marine is currently generating about 0.11 per unit of volatility. If you would invest 4,120 in King Chou Marine on October 20, 2024 and sell it today you would earn a total of 45.00 from holding King Chou Marine or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vate Technology Co vs. King Chou Marine
Performance |
| Timeline |
| Vate Technology |
| King Chou Marine |
Vate Technology and King Chou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vate Technology and King Chou
The main advantage of trading using opposite Vate Technology and King Chou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vate Technology position performs unexpectedly, King Chou 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 King Chou will offset losses from the drop in King Chou's long position.| Vate Technology vs. Scientech Corp | Vate Technology vs. Sitronix Technology Corp | Vate Technology vs. Kinsus Interconnect Technology | Vate Technology vs. Andes Technology Corp |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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