Correlation Between Kingclean Electric and Unigroup Guoxin
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By analyzing existing cross correlation between Kingclean Electric Co and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Kingclean Electric and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Unigroup Guoxin.
Diversification Opportunities for Kingclean Electric and Unigroup Guoxin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Unigroup is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Kingclean Electric and Unigroup Guoxin
Assuming the 90 days trading horizon Kingclean Electric Co is expected to generate 1.07 times more return on investment than Unigroup Guoxin. However, Kingclean Electric is 1.07 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.13 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about 0.12 per unit of risk. If you would invest 2,483 in Kingclean Electric Co on January 1, 2025 and sell it today you would earn a total of 186.00 from holding Kingclean Electric Co or generate 7.49% 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. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Kingclean Electric |
| Unigroup Guoxin Micr |
Kingclean Electric and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Unigroup Guoxin
The main advantage of trading using opposite Kingclean Electric and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.The idea behind Kingclean Electric Co and Unigroup Guoxin Microelectronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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