Correlation Between Kingclean Electric and Tibet Huayu
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By analyzing existing cross correlation between Kingclean Electric Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Kingclean Electric and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Tibet Huayu.
Diversification Opportunities for Kingclean Electric and Tibet Huayu
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingclean and Tibet is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Tibet Huayu go up and down completely randomly.
Pair Corralation between Kingclean Electric and Tibet Huayu
Assuming the 90 days trading horizon Kingclean Electric is expected to generate 2.71 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Kingclean Electric Co is 1.12 times less risky than Tibet Huayu. It trades about 0.11 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,231 in Tibet Huayu Mining on November 3, 2024 and sell it today you would earn a total of 150.00 from holding Tibet Huayu Mining or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Kingclean Electric |
| Tibet Huayu Mining |
Kingclean Electric and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Tibet Huayu
The main advantage of trading using opposite Kingclean Electric and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.The idea behind Kingclean Electric Co and Tibet Huayu Mining 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.
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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