Correlation Between Kingclean Electric and Hongrun Construction
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By analyzing existing cross correlation between Kingclean Electric Co and Hongrun Construction Group, you can compare the effects of market volatilities on Kingclean Electric and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Hongrun Construction.
Diversification Opportunities for Kingclean Electric and Hongrun Construction
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingclean and Hongrun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Hongrun Construction go up and down completely randomly.
Pair Corralation between Kingclean Electric and Hongrun Construction
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Hongrun Construction. In addition to that, Kingclean Electric is 1.01 times more volatile than Hongrun Construction Group. It trades about -0.02 of its total potential returns per unit of risk. Hongrun Construction Group is currently generating about -0.01 per unit of volatility. If you would invest 537.00 in Hongrun Construction Group on August 29, 2024 and sell it today you would lose (101.00) from holding Hongrun Construction Group or give up 18.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Hongrun Construction Group
Performance |
| Timeline |
| Kingclean Electric |
| Hongrun Construction |
Kingclean Electric and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Hongrun Construction
The main advantage of trading using opposite Kingclean Electric and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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