Correlation Between Kingclean Electric and Shanghai Action
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By analyzing existing cross correlation between Kingclean Electric Co and Shanghai Action Education, you can compare the effects of market volatilities on Kingclean Electric and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Shanghai Action.
Diversification Opportunities for Kingclean Electric and Shanghai Action
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Shanghai Action go up and down completely randomly.
Pair Corralation between Kingclean Electric and Shanghai Action
Assuming the 90 days trading horizon Kingclean Electric Co is expected to generate 0.78 times more return on investment than Shanghai Action. However, Kingclean Electric Co is 1.29 times less risky than Shanghai Action. It trades about -0.07 of its potential returns per unit of risk. Shanghai Action Education is currently generating about -0.22 per unit of risk. If you would invest 2,424 in Kingclean Electric Co on August 24, 2024 and sell it today you would lose (60.00) from holding Kingclean Electric Co or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Shanghai Action Education
Performance |
| Timeline |
| Kingclean Electric |
| Shanghai Action Education |
Kingclean Electric and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Shanghai Action
The main advantage of trading using opposite Kingclean Electric and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action'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 |
| Shanghai Action vs. Shenzhen SDG Information | Shanghai Action vs. Fujian Oriental Silver | Shanghai Action vs. Uroica Mining Safety | Shanghai Action vs. YLZ Information Tech |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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