Correlation Between Granite City and KingsoftLimited
Can any of the company-specific risk be diversified away by investing in both Granite City and KingsoftLimited 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 Granite City and KingsoftLimited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite City Food and Kingsoft Limited, you can compare the effects of market volatilities on Granite City and KingsoftLimited 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 Granite City with a short position of KingsoftLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite City and KingsoftLimited.
Diversification Opportunities for Granite City and KingsoftLimited
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and KingsoftLimited is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite City Food and Kingsoft Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsoft Limited and Granite City 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 Granite City Food are associated (or correlated) with KingsoftLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsoft Limited has no effect on the direction of Granite City i.e., Granite City and KingsoftLimited go up and down completely randomly.
Pair Corralation between Granite City and KingsoftLimited
Given the investment horizon of 90 days Granite City Food is expected to under-perform the KingsoftLimited. In addition to that, Granite City is 1.54 times more volatile than Kingsoft Limited. It trades about -0.08 of its total potential returns per unit of risk. Kingsoft Limited is currently generating about 0.01 per unit of volatility. If you would invest 337.00 in Kingsoft Limited on August 30, 2024 and sell it today you would lose (2.00) from holding Kingsoft Limited or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 55.2% |
| Values | Daily Returns |
Granite City Food vs. Kingsoft Limited
Performance |
| Timeline |
| Granite City Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingsoft Limited |
Granite City and KingsoftLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite City and KingsoftLimited
The main advantage of trading using opposite Granite City and KingsoftLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite City position performs unexpectedly, KingsoftLimited 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 KingsoftLimited will offset losses from the drop in KingsoftLimited's long position.| Granite City vs. Ark Restaurants Corp | Granite City vs. Noble Romans | Granite City vs. Nathans Famous | Granite City vs. Biglari Holdings |
| KingsoftLimited vs. UbiSoft Entertainment | KingsoftLimited vs. Sega Sammy Holdings | KingsoftLimited vs. Capcom Co Ltd | KingsoftLimited vs. GDEV Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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