Correlation Between Kingboard Chemical and Weiqiao Textile
Can any of the company-specific risk be diversified away by investing in both Kingboard Chemical and Weiqiao Textile 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 Kingboard Chemical and Weiqiao Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingboard Chemical Holdings and Weiqiao Textile, you can compare the effects of market volatilities on Kingboard Chemical and Weiqiao Textile 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 Kingboard Chemical with a short position of Weiqiao Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingboard Chemical and Weiqiao Textile.
Diversification Opportunities for Kingboard Chemical and Weiqiao Textile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingboard and Weiqiao is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kingboard Chemical Holdings and Weiqiao Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weiqiao Textile and Kingboard Chemical 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 Kingboard Chemical Holdings are associated (or correlated) with Weiqiao Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weiqiao Textile has no effect on the direction of Kingboard Chemical i.e., Kingboard Chemical and Weiqiao Textile go up and down completely randomly.
Pair Corralation between Kingboard Chemical and Weiqiao Textile
If you would invest 20.00 in Weiqiao Textile on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Weiqiao Textile or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kingboard Chemical Holdings vs. Weiqiao Textile
Performance |
| Timeline |
| Kingboard Chemical |
| Weiqiao Textile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingboard Chemical and Weiqiao Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingboard Chemical and Weiqiao Textile
The main advantage of trading using opposite Kingboard Chemical and Weiqiao Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingboard Chemical position performs unexpectedly, Weiqiao Textile 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 Weiqiao Textile will offset losses from the drop in Weiqiao Textile's long position.| Kingboard Chemical vs. Tapestry | Kingboard Chemical vs. Victorias Secret Co | Kingboard Chemical vs. Verra Mobility Corp | Kingboard Chemical vs. Capri Holdings |
| Weiqiao Textile vs. Delek Energy | Weiqiao Textile vs. RH | Weiqiao Textile vs. Victorias Secret Co | Weiqiao Textile vs. Dominos Pizza Common |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |