Correlation Between Kingclean Electric and Rongsheng Petrochemical
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By analyzing existing cross correlation between Kingclean Electric Co and Rongsheng Petrochemical Co, you can compare the effects of market volatilities on Kingclean Electric and Rongsheng Petrochemical 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 Rongsheng Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Rongsheng Petrochemical.
Diversification Opportunities for Kingclean Electric and Rongsheng Petrochemical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingclean and Rongsheng is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Rongsheng Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongsheng Petrochemical 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 Rongsheng Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongsheng Petrochemical has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Rongsheng Petrochemical go up and down completely randomly.
Pair Corralation between Kingclean Electric and Rongsheng Petrochemical
Assuming the 90 days trading horizon Kingclean Electric Co is expected to generate 1.08 times more return on investment than Rongsheng Petrochemical. However, Kingclean Electric is 1.08 times more volatile than Rongsheng Petrochemical Co. It trades about -0.02 of its potential returns per unit of risk. Rongsheng Petrochemical Co is currently generating about -0.4 per unit of risk. If you would invest 2,347 in Kingclean Electric Co on October 12, 2024 and sell it today you would lose (17.00) from holding Kingclean Electric Co or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Rongsheng Petrochemical Co
Performance |
| Timeline |
| Kingclean Electric |
| Rongsheng Petrochemical |
Kingclean Electric and Rongsheng Petrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Rongsheng Petrochemical
The main advantage of trading using opposite Kingclean Electric and Rongsheng Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Rongsheng Petrochemical 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 Rongsheng Petrochemical will offset losses from the drop in Rongsheng Petrochemical's long position.| Kingclean Electric vs. Xilong Chemical Co | Kingclean Electric vs. Shenzhen Noposion Agrochemicals | Kingclean Electric vs. Do Fluoride Chemicals Co | Kingclean Electric vs. Jinsanjiang Silicon Material |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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