Correlation Between New China and Kingclean Electric
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By analyzing existing cross correlation between New China Life and Kingclean Electric Co, you can compare the effects of market volatilities on New China 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 New China with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Kingclean Electric.
Diversification Opportunities for New China and Kingclean Electric
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Kingclean is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and New China 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 New China Life 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 New China i.e., New China and Kingclean Electric go up and down completely randomly.
Pair Corralation between New China and Kingclean Electric
Assuming the 90 days trading horizon New China Life is expected to generate 2.1 times more return on investment than Kingclean Electric. However, New China is 2.1 times more volatile than Kingclean Electric Co. It trades about -0.05 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.21 per unit of risk. If you would invest 4,865 in New China Life on August 28, 2024 and sell it today you would lose (234.00) from holding New China Life or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Kingclean Electric Co
Performance |
| Timeline |
| New China Life |
| Kingclean Electric |
New China and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Kingclean Electric
The main advantage of trading using opposite New China and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. Hubei Dinglong Chemical | New China vs. Guizhou Chanhen Chemical | New China vs. MayAir Technology Co | New China vs. Vanfund Urban Investment |
| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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