Correlation Between Longjian Road and Kingclean Electric
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By analyzing existing cross correlation between Longjian Road Bridge and Kingclean Electric Co, you can compare the effects of market volatilities on Longjian Road and Kingclean Electric 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 Longjian Road with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Kingclean Electric.
Diversification Opportunities for Longjian Road and Kingclean Electric
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longjian and Kingclean is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Longjian Road i.e., Longjian Road and Kingclean Electric go up and down completely randomly.
Pair Corralation between Longjian Road and Kingclean Electric
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 1.35 times more return on investment than Kingclean Electric. However, Longjian Road is 1.35 times more volatile than Kingclean Electric Co. It trades about 0.16 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.07 per unit of risk. If you would invest 358.00 in Longjian Road Bridge on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Longjian Road Bridge or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Kingclean Electric Co
Performance |
| Timeline |
| Longjian Road Bridge |
| Kingclean Electric |
Longjian Road and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Kingclean Electric
The main advantage of trading using opposite Longjian Road and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Longjian Road vs. Chengdu Kanghua Biological | Longjian Road vs. Beijing Wantai Biological | Longjian Road vs. Suzhou Novoprotein Scientific | Longjian Road vs. Aluminum Corp of |
| Kingclean Electric vs. CITIC Metal Co | Kingclean Electric vs. Hainan Mining Co | Kingclean Electric vs. Huaibei Mining Holdings | Kingclean Electric vs. Jiangxi Naipu Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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