Correlation Between Huafa Industrial and Kingsignal Technology
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By analyzing existing cross correlation between Huafa Industrial Co and Kingsignal Technology Co, you can compare the effects of market volatilities on Huafa Industrial and Kingsignal Technology 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 Huafa Industrial with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Kingsignal Technology.
Diversification Opportunities for Huafa Industrial and Kingsignal Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huafa and Kingsignal is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Huafa Industrial and Kingsignal Technology
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Kingsignal Technology. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 1.98 times less risky than Kingsignal Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Kingsignal Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Kingsignal Technology Co on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Kingsignal Technology Co or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Kingsignal Technology Co
Performance |
| Timeline |
| Huafa Industrial |
| Kingsignal Technology |
Huafa Industrial and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Kingsignal Technology
The main advantage of trading using opposite Huafa Industrial and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Huafa Industrial vs. Cambricon Technologies Corp | Huafa Industrial vs. Empyrean Technology Co | Huafa Industrial vs. Kuang Chi Technologies | Huafa Industrial vs. Gansu Jiu Steel |
| Kingsignal Technology vs. China State Construction | Kingsignal Technology vs. Huafa Industrial Co | Kingsignal Technology vs. China International Capital | Kingsignal Technology vs. Kweichow Moutai Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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