Correlation Between Shandong Sinoglory and King Strong
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By analyzing existing cross correlation between Shandong Sinoglory Health and King Strong New Material, you can compare the effects of market volatilities on Shandong Sinoglory and King Strong 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 Shandong Sinoglory with a short position of King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and King Strong.
Diversification Opportunities for Shandong Sinoglory and King Strong
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and King is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New and Shandong Sinoglory 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 Shandong Sinoglory Health are associated (or correlated) with King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Shandong Sinoglory i.e., Shandong Sinoglory and King Strong go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and King Strong
Assuming the 90 days trading horizon Shandong Sinoglory is expected to generate 1.36 times less return on investment than King Strong. But when comparing it to its historical volatility, Shandong Sinoglory Health is 1.64 times less risky than King Strong. It trades about 0.07 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,664 in King Strong New Material on October 18, 2024 and sell it today you would earn a total of 336.00 from holding King Strong New Material or generate 20.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. King Strong New Material
Performance |
| Timeline |
| Shandong Sinoglory Health |
| King Strong New |
Shandong Sinoglory and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and King Strong
The main advantage of trading using opposite Shandong Sinoglory and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Shandong Sinoglory vs. JuneYao Dairy Co | Shandong Sinoglory vs. China Mobile Limited | Shandong Sinoglory vs. Anhui Jianghuai Automobile | Shandong Sinoglory vs. Great Sun Foods Co |
| King Strong vs. Shandong Sinoglory Health | King Strong vs. Shantou Wanshun Package | King Strong vs. Goodwill E Health | King Strong vs. Sanbo Hospital Management |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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