Correlation Between Thinkingdom Media and Kingclean Electric
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By analyzing existing cross correlation between Thinkingdom Media Group and Kingclean Electric Co, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Kingclean Electric.
Diversification Opportunities for Thinkingdom Media and Kingclean Electric
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thinkingdom and Kingclean is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and Kingclean Electric go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Kingclean Electric
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 2.59 times more return on investment than Kingclean Electric. However, Thinkingdom Media is 2.59 times more volatile than Kingclean Electric Co. It trades about 0.22 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.11 per unit of risk. If you would invest 1,777 in Thinkingdom Media Group on September 13, 2024 and sell it today you would earn a total of 339.00 from holding Thinkingdom Media Group or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Kingclean Electric Co
Performance |
| Timeline |
| Thinkingdom Media |
| Kingclean Electric |
Thinkingdom Media and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Kingclean Electric
The main advantage of trading using opposite Thinkingdom Media and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. 159681 | Thinkingdom Media vs. 159005 | Thinkingdom Media vs. Loctek Ergonomic Technology |
| Kingclean Electric vs. Chengdu Kanghua Biological | Kingclean Electric vs. Beijing Wantai Biological | Kingclean Electric vs. Suzhou Novoprotein Scientific | Kingclean Electric vs. Aluminum Corp of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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