Correlation Between Dawushan Farm and Kindom Construction
Can any of the company-specific risk be diversified away by investing in both Dawushan Farm and Kindom Construction 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 Dawushan Farm and Kindom Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dawushan Farm Tech and Kindom Construction Corp, you can compare the effects of market volatilities on Dawushan Farm and Kindom Construction 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 Dawushan Farm with a short position of Kindom Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawushan Farm and Kindom Construction.
Diversification Opportunities for Dawushan Farm and Kindom Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dawushan and Kindom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dawushan Farm Tech and Kindom Construction Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindom Construction Corp and Dawushan Farm 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 Dawushan Farm Tech are associated (or correlated) with Kindom Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindom Construction Corp has no effect on the direction of Dawushan Farm i.e., Dawushan Farm and Kindom Construction go up and down completely randomly.
Pair Corralation between Dawushan Farm and Kindom Construction
Assuming the 90 days trading horizon Dawushan Farm Tech is expected to under-perform the Kindom Construction. But the stock apears to be less risky and, when comparing its historical volatility, Dawushan Farm Tech is 1.47 times less risky than Kindom Construction. The stock trades about -0.03 of its potential returns per unit of risk. The Kindom Construction Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,090 in Kindom Construction Corp on September 12, 2024 and sell it today you would earn a total of 730.00 from holding Kindom Construction Corp or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawushan Farm Tech vs. Kindom Construction Corp
Performance |
| Timeline |
| Dawushan Farm Tech |
| Kindom Construction Corp |
Dawushan Farm and Kindom Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawushan Farm and Kindom Construction
The main advantage of trading using opposite Dawushan Farm and Kindom Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawushan Farm position performs unexpectedly, Kindom Construction 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 Kindom Construction will offset losses from the drop in Kindom Construction's long position.| Dawushan Farm vs. Taiwan Semiconductor Manufacturing | Dawushan Farm vs. Hon Hai Precision | Dawushan Farm vs. MediaTek | Dawushan Farm vs. Chunghwa Telecom Co |
| Kindom Construction vs. Chong Hong Construction | Kindom Construction vs. Ruentex Development Co | Kindom Construction vs. Symtek Automation Asia | Kindom Construction vs. WiseChip Semiconductor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |