Correlation Between China State and Kingsignal Technology
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By analyzing existing cross correlation between China State Construction and Kingsignal Technology Co, you can compare the effects of market volatilities on China State 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 China State with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Kingsignal Technology.
Diversification Opportunities for China State and Kingsignal Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Kingsignal is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and China State 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 China State Construction 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 China State i.e., China State and Kingsignal Technology go up and down completely randomly.
Pair Corralation between China State and Kingsignal Technology
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Kingsignal Technology. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.69 times less risky than Kingsignal Technology. The stock trades about -0.02 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Kingsignal Technology Co
Performance |
| Timeline |
| China State Construction |
| Kingsignal Technology |
China State and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Kingsignal Technology
The main advantage of trading using opposite China State and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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