Correlation Between King Strong and Chongqing Brewery
Specify exactly 2 symbols:
By analyzing existing cross correlation between King Strong New Material and Chongqing Brewery Co, you can compare the effects of market volatilities on King Strong and Chongqing Brewery 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 King Strong with a short position of Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Chongqing Brewery.
Diversification Opportunities for King Strong and Chongqing Brewery
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between King and Chongqing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery and King Strong 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 King Strong New Material are associated (or correlated) with Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of King Strong i.e., King Strong and Chongqing Brewery go up and down completely randomly.
Pair Corralation between King Strong and Chongqing Brewery
Assuming the 90 days trading horizon King Strong is expected to generate 2.35 times less return on investment than Chongqing Brewery. In addition to that, King Strong is 1.57 times more volatile than Chongqing Brewery Co. It trades about 0.04 of its total potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.14 per unit of volatility. If you would invest 6,063 in Chongqing Brewery Co on September 26, 2024 and sell it today you would earn a total of 354.00 from holding Chongqing Brewery Co or generate 5.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
King Strong New Material vs. Chongqing Brewery Co
Performance |
Timeline |
King Strong New |
Chongqing Brewery |
King Strong and Chongqing Brewery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with King Strong and Chongqing Brewery
The main advantage of trading using opposite King Strong and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.King Strong vs. Bank of China | King Strong vs. Kweichow Moutai Co | King Strong vs. PetroChina Co Ltd | King Strong vs. Bank of Communications |
Chongqing Brewery vs. BYD Co Ltd | Chongqing Brewery vs. China Mobile Limited | Chongqing Brewery vs. Agricultural Bank of | Chongqing Brewery vs. Industrial and Commercial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Commodity Directory Find actively traded commodities issued by global exchanges |