Correlation Between Victory New and Kingcan Holdings
Can any of the company-specific risk be diversified away by investing in both Victory New and Kingcan Holdings 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 Victory New and Kingcan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory New Materials and Kingcan Holdings, you can compare the effects of market volatilities on Victory New and Kingcan Holdings 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 Victory New with a short position of Kingcan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory New and Kingcan Holdings.
Diversification Opportunities for Victory New and Kingcan Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and Kingcan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Victory New Materials and Kingcan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingcan Holdings and Victory New 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 Victory New Materials are associated (or correlated) with Kingcan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingcan Holdings has no effect on the direction of Victory New i.e., Victory New and Kingcan Holdings go up and down completely randomly.
Pair Corralation between Victory New and Kingcan Holdings
Assuming the 90 days trading horizon Victory New Materials is expected to under-perform the Kingcan Holdings. In addition to that, Victory New is 1.51 times more volatile than Kingcan Holdings. It trades about -0.13 of its total potential returns per unit of risk. Kingcan Holdings is currently generating about 0.0 per unit of volatility. If you would invest 1,310 in Kingcan Holdings on December 30, 2024 and sell it today you would earn a total of 0.00 from holding Kingcan Holdings or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Victory New Materials vs. Kingcan Holdings
Performance |
Timeline |
Victory New Materials |
Kingcan Holdings |
Victory New and Kingcan Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Victory New and Kingcan Holdings
The main advantage of trading using opposite Victory New and Kingcan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory New position performs unexpectedly, Kingcan Holdings 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 Kingcan Holdings will offset losses from the drop in Kingcan Holdings' long position.Victory New vs. Asia Plastic Recycling | Victory New vs. Hunya Foods Co | Victory New vs. Jinli Group Holdings | Victory New vs. Kwong Fong Industries |
Kingcan Holdings vs. Jinli Group Holdings | Kingcan Holdings vs. Shinih Enterprise Co | Kingcan Holdings vs. Super Dragon Technology | Kingcan Holdings vs. Shui Mu International Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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