Correlation Between Kingclean Electric and Xiamen Bank
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By analyzing existing cross correlation between Kingclean Electric Co and Xiamen Bank Co, you can compare the effects of market volatilities on Kingclean Electric and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Xiamen Bank.
Diversification Opportunities for Kingclean Electric and Xiamen Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Xiamen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Xiamen Bank go up and down completely randomly.
Pair Corralation between Kingclean Electric and Xiamen Bank
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Xiamen Bank. In addition to that, Kingclean Electric is 1.01 times more volatile than Xiamen Bank Co. It trades about -0.16 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.12 per unit of volatility. If you would invest 518.00 in Xiamen Bank Co on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Xiamen Bank Co or generate 4.83% 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. Xiamen Bank Co
Performance |
| Timeline |
| Kingclean Electric |
| Xiamen Bank |
Kingclean Electric and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Xiamen Bank
The main advantage of trading using opposite Kingclean Electric and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Kingclean Electric vs. CITIC Metal Co | Kingclean Electric vs. Hainan Mining Co | Kingclean Electric vs. Huaibei Mining Holdings | Kingclean Electric vs. Jiangxi Naipu Mining |
| Xiamen Bank vs. Servyou Software Group | Xiamen Bank vs. Hunan Mendale Hometextile | Xiamen Bank vs. Shandong Homey Aquatic | Xiamen Bank vs. DO Home Collection |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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