Correlation Between Kinik and Kung Long
Can any of the company-specific risk be diversified away by investing in both Kinik and Kung Long 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 Kinik and Kung Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinik Co and Kung Long Batteries, you can compare the effects of market volatilities on Kinik and Kung Long 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 Kinik with a short position of Kung Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinik and Kung Long.
Diversification Opportunities for Kinik and Kung Long
Good diversification
The 3 months correlation between Kinik and Kung is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kinik Co and Kung Long Batteries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kung Long Batteries and Kinik 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 Kinik Co are associated (or correlated) with Kung Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kung Long Batteries has no effect on the direction of Kinik i.e., Kinik and Kung Long go up and down completely randomly.
Pair Corralation between Kinik and Kung Long
Assuming the 90 days trading horizon Kinik Co is expected to under-perform the Kung Long. In addition to that, Kinik is 2.98 times more volatile than Kung Long Batteries. It trades about -0.12 of its total potential returns per unit of risk. Kung Long Batteries is currently generating about 0.0 per unit of volatility. If you would invest 15,500 in Kung Long Batteries on December 28, 2024 and sell it today you would earn a total of 0.00 from holding Kung Long Batteries or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.21% |
Values | Daily Returns |
Kinik Co vs. Kung Long Batteries
Performance |
Timeline |
Kinik |
Kung Long Batteries |
Kinik and Kung Long Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinik and Kung Long
The main advantage of trading using opposite Kinik and Kung Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinik position performs unexpectedly, Kung Long 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 Kung Long will offset losses from the drop in Kung Long's long position.Kinik vs. Chung Hsin Electric Machinery | Kinik vs. Basso Industry Corp | Kinik vs. Hota Industrial Mfg | Kinik vs. Great Wall Enterprise |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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