Correlation Between China International and Kingsignal Technology
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By analyzing existing cross correlation between China International Capital and Kingsignal Technology Co, you can compare the effects of market volatilities on China International 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 International with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Kingsignal Technology.
Diversification Opportunities for China International and Kingsignal Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Kingsignal is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital 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 International 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 International Capital 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 International i.e., China International and Kingsignal Technology go up and down completely randomly.
Pair Corralation between China International and Kingsignal Technology
Assuming the 90 days trading horizon China International Capital is expected to under-perform the Kingsignal Technology. But the stock apears to be less risky and, when comparing its historical volatility, China International Capital is 1.31 times less risky than Kingsignal Technology. The stock trades about -0.05 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 |
China International Capital vs. Kingsignal Technology Co
Performance |
| Timeline |
| China International |
| Kingsignal Technology |
China International and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Kingsignal Technology
The main advantage of trading using opposite China International and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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 International vs. Youyou Foods Co | China International vs. Sinomach General Machinery | China International vs. Shanghai Ziyan Foods | China International vs. Sichuan Teway Food |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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