Correlation Between Kingclean Electric and Lander Sports
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By analyzing existing cross correlation between Kingclean Electric Co and Lander Sports Development, you can compare the effects of market volatilities on Kingclean Electric and Lander Sports 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 Kingclean Electric with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Lander Sports.
Diversification Opportunities for Kingclean Electric and Lander Sports
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Lander is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Kingclean Electric 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 Kingclean Electric Co are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Lander Sports go up and down completely randomly.
Pair Corralation between Kingclean Electric and Lander Sports
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Lander Sports. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 2.09 times less risky than Lander Sports. The stock trades about -0.11 of its potential returns per unit of risk. The Lander Sports Development is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Lander Sports Development on September 13, 2024 and sell it today you would earn a total of 52.00 from holding Lander Sports Development or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Lander Sports Development
Performance |
| Timeline |
| Kingclean Electric |
| Lander Sports Development |
Kingclean Electric and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Lander Sports
The main advantage of trading using opposite Kingclean Electric and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Kingclean Electric vs. Chengdu Kanghua Biological | Kingclean Electric vs. Beijing Wantai Biological | Kingclean Electric vs. Suzhou Novoprotein Scientific | Kingclean Electric vs. Aluminum Corp of |
| Lander Sports vs. China Life Insurance | Lander Sports vs. Cinda Securities Co | Lander Sports vs. Piotech Inc A | Lander Sports vs. Dongxing Sec 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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