Correlation Between Green World and King Chou
Can any of the company-specific risk be diversified away by investing in both Green World and King Chou at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Green World and King Chou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and King Chou Marine, you can compare the effects of market volatilities on Green World and King Chou 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 Green World with a short position of King Chou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and King Chou.
Diversification Opportunities for Green World and King Chou
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and King is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and King Chou Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Chou Marine and Green World 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 Green World Fintech are associated (or correlated) with King Chou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Chou Marine has no effect on the direction of Green World i.e., Green World and King Chou go up and down completely randomly.
Pair Corralation between Green World and King Chou
Assuming the 90 days trading horizon Green World Fintech is expected to under-perform the King Chou. In addition to that, Green World is 3.18 times more volatile than King Chou Marine. It trades about -0.2 of its total potential returns per unit of risk. King Chou Marine is currently generating about 0.17 per unit of volatility. If you would invest 4,020 in King Chou Marine on September 12, 2024 and sell it today you would earn a total of 160.00 from holding King Chou Marine or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. King Chou Marine
Performance |
| Timeline |
| Green World Fintech |
| King Chou Marine |
Green World and King Chou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and King Chou
The main advantage of trading using opposite Green World and King Chou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, King Chou 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 King Chou will offset losses from the drop in King Chou's long position.| Green World vs. Level Biotechnology | Green World vs. Golden Biotechnology | Green World vs. Apex Biotechnology Corp | Green World vs. Arbor Technology |
| King Chou vs. Chun Yuan Steel | King Chou vs. Chia Yi Steel | King Chou vs. ECOVE Environment Corp | King Chou vs. Yeou Yih Steel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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