Correlation Between Kurita Water and China Conch
Can any of the company-specific risk be diversified away by investing in both Kurita Water and China Conch 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 Kurita Water and China Conch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kurita Water Industries and China Conch Venture, you can compare the effects of market volatilities on Kurita Water and China Conch 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 Kurita Water with a short position of China Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kurita Water and China Conch.
Diversification Opportunities for Kurita Water and China Conch
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kurita and China is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kurita Water Industries and China Conch Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Conch Venture and Kurita Water 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 Kurita Water Industries are associated (or correlated) with China Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Conch Venture has no effect on the direction of Kurita Water i.e., Kurita Water and China Conch go up and down completely randomly.
Pair Corralation between Kurita Water and China Conch
If you would invest 3,684 in Kurita Water Industries on September 2, 2024 and sell it today you would earn a total of 101.00 from holding Kurita Water Industries or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kurita Water Industries vs. China Conch Venture
Performance |
| Timeline |
| Kurita Water Industries |
| China Conch Venture |
Kurita Water and China Conch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kurita Water and China Conch
The main advantage of trading using opposite Kurita Water and China Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kurita Water position performs unexpectedly, China Conch 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 China Conch will offset losses from the drop in China Conch's long position.| Kurita Water vs. Zurn Elkay Water | Kurita Water vs. Federal Signal | Kurita Water vs. Energy Recovery | Kurita Water vs. CECO Environmental Corp |
| China Conch vs. Eestech | China Conch vs. Bion Environmental Technologies | China Conch vs. TOMI Environmental Solutions |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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