Correlation Between Kingclean Electric and China State
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By analyzing existing cross correlation between Kingclean Electric Co and China State Construction, you can compare the effects of market volatilities on Kingclean Electric and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and China State.
Diversification Opportunities for Kingclean Electric and China State
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kingclean and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and China State go up and down completely randomly.
Pair Corralation between Kingclean Electric and China State
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the China State. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 1.26 times less risky than China State. The stock trades about -0.2 of its potential returns per unit of risk. The China State Construction is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 615.00 in China State Construction on September 2, 2024 and sell it today you would lose (17.00) from holding China State Construction or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. China State Construction
Performance |
| Timeline |
| Kingclean Electric |
| China State Construction |
Kingclean Electric and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and China State
The main advantage of trading using opposite Kingclean Electric and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Kingclean Electric vs. Semiconductor Manufacturing Intl | Kingclean Electric vs. Anhui Conch Cement | Kingclean Electric vs. Shenzhen New Nanshan | Kingclean Electric vs. Sichuan Tianqi Lithium |
| China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology | China State vs. 516220 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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