Correlation Between Kingclean Electric and Ningxia Younglight
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By analyzing existing cross correlation between Kingclean Electric Co and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Kingclean Electric and Ningxia Younglight 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 Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Ningxia Younglight.
Diversification Opportunities for Kingclean Electric and Ningxia Younglight
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kingclean and Ningxia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight 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 Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Kingclean Electric and Ningxia Younglight
Assuming the 90 days trading horizon Kingclean Electric Co is expected to generate 0.35 times more return on investment than Ningxia Younglight. However, Kingclean Electric Co is 2.87 times less risky than Ningxia Younglight. It trades about -0.05 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.17 per unit of risk. If you would invest 2,276 in Kingclean Electric Co on October 14, 2024 and sell it today you would lose (40.00) from holding Kingclean Electric Co or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Kingclean Electric |
| Ningxia Younglight |
Kingclean Electric and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Ningxia Younglight
The main advantage of trading using opposite Kingclean Electric and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Kingclean Electric vs. Shenzhen MYS Environmental | Kingclean Electric vs. Dynagreen Environmental Protection | Kingclean Electric vs. Olympic Circuit Technology | Kingclean Electric vs. Anyang Iron Steel |
| Ningxia Younglight vs. Chengdu Spaceon Electronics | Ningxia Younglight vs. China Asset Management | Ningxia Younglight vs. Kingclean Electric Co | Ningxia Younglight vs. Huaxia Fund 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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