Correlation Between Chuangs China and KION Group
Can any of the company-specific risk be diversified away by investing in both Chuangs China and KION Group 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 Chuangs China and KION Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and KION Group AG, you can compare the effects of market volatilities on Chuangs China and KION Group 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 Chuangs China with a short position of KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and KION Group.
Diversification Opportunities for Chuangs China and KION Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and KION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG and Chuangs China 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 Chuangs China Investments are associated (or correlated) with KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of Chuangs China i.e., Chuangs China and KION Group go up and down completely randomly.
Pair Corralation between Chuangs China and KION Group
If you would invest 3,140 in KION Group AG on October 24, 2024 and sell it today you would earn a total of 274.00 from holding KION Group AG or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Chuangs China Investments vs. KION Group AG
Performance |
| Timeline |
| Chuangs China Investments |
| KION Group AG |
Chuangs China and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and KION Group
The main advantage of trading using opposite Chuangs China and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| Chuangs China vs. Virtu Financial | Chuangs China vs. Chunghwa Telecom Co | Chuangs China vs. CDN IMPERIAL BANK | Chuangs China vs. SUN LIFE FINANCIAL |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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