Correlation Between KION Group and Sinotruk (Hong
Can any of the company-specific risk be diversified away by investing in both KION Group and Sinotruk (Hong 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 KION Group and Sinotruk (Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KION Group AG and Sinotruk Limited, you can compare the effects of market volatilities on KION Group and Sinotruk (Hong 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 KION Group with a short position of Sinotruk (Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of KION Group and Sinotruk (Hong.
Diversification Opportunities for KION Group and Sinotruk (Hong
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KION and Sinotruk is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG and Sinotruk Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotruk Limited and KION Group 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 KION Group AG are associated (or correlated) with Sinotruk (Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotruk Limited has no effect on the direction of KION Group i.e., KION Group and Sinotruk (Hong go up and down completely randomly.
Pair Corralation between KION Group and Sinotruk (Hong
Assuming the 90 days horizon KION Group AG is expected to under-perform the Sinotruk (Hong. But the stock apears to be less risky and, when comparing its historical volatility, KION Group AG is 1.03 times less risky than Sinotruk (Hong. The stock trades about -0.15 of its potential returns per unit of risk. The Sinotruk Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Sinotruk Limited on August 28, 2024 and sell it today you would earn a total of 20.00 from holding Sinotruk Limited or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KION Group AG vs. Sinotruk Limited
Performance |
| Timeline |
| KION Group AG |
| Sinotruk Limited |
KION Group and Sinotruk (Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KION Group and Sinotruk (Hong
The main advantage of trading using opposite KION Group and Sinotruk (Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group position performs unexpectedly, Sinotruk (Hong 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 Sinotruk (Hong will offset losses from the drop in Sinotruk (Hong's long position.| KION Group vs. EAST SIDE GAMES | KION Group vs. Townsquare Media | KION Group vs. Hollywood Bowl Group | KION Group vs. Ubisoft Entertainment SA |
| Sinotruk (Hong vs. KION Group AG | Sinotruk (Hong vs. Hyster Yale Materials Handling | Sinotruk (Hong vs. Superior Plus Corp | Sinotruk (Hong vs. NMI Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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