Correlation Between Kingclean Electric and Ciwen Media
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By analyzing existing cross correlation between Kingclean Electric Co and Ciwen Media Co, you can compare the effects of market volatilities on Kingclean Electric and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Ciwen Media.
Diversification Opportunities for Kingclean Electric and Ciwen Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Ciwen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Ciwen Media go up and down completely randomly.
Pair Corralation between Kingclean Electric and Ciwen Media
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Ciwen Media. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 2.19 times less risky than Ciwen Media. The stock trades about -0.11 of its potential returns per unit of risk. The Ciwen Media Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 711.00 in Ciwen Media Co on September 13, 2024 and sell it today you would earn a total of 85.00 from holding Ciwen Media Co or generate 11.95% 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. Ciwen Media Co
Performance |
| Timeline |
| Kingclean Electric |
| Ciwen Media |
Kingclean Electric and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Ciwen Media
The main advantage of trading using opposite Kingclean Electric and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's 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 |
| Ciwen Media vs. Shaanxi Energy Investment | Ciwen Media vs. Kunwu Jiuding Investment | Ciwen Media vs. Henan Shuanghui Investment | Ciwen Media vs. Nuode Investment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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