Correlation Between China Railway and Kingclean Electric
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By analyzing existing cross correlation between China Railway Construction and Kingclean Electric Co, you can compare the effects of market volatilities on China Railway and Kingclean Electric 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 China Railway with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Kingclean Electric.
Diversification Opportunities for China Railway and Kingclean Electric
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kingclean is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and China Railway 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 China Railway Construction are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of China Railway i.e., China Railway and Kingclean Electric go up and down completely randomly.
Pair Corralation between China Railway and Kingclean Electric
Assuming the 90 days trading horizon China Railway Construction is expected to under-perform the Kingclean Electric. In addition to that, China Railway is 1.24 times more volatile than Kingclean Electric Co. It trades about -0.19 of its total potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.06 per unit of volatility. If you would invest 2,281 in Kingclean Electric Co on September 28, 2024 and sell it today you would earn a total of 31.00 from holding Kingclean Electric Co or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Kingclean Electric Co
Performance |
| Timeline |
| China Railway Constr |
| Kingclean Electric |
China Railway and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Kingclean Electric
The main advantage of trading using opposite China Railway and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| China Railway vs. Kangping Technology Co | China Railway vs. Vanfund Urban Investment | China Railway vs. Tieling Newcity Investment | China Railway vs. Postal Savings Bank |
| Kingclean Electric vs. Industrial and Commercial | Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. Agricultural Bank of | Kingclean Electric vs. China Mobile Limited |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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