Correlation Between Zhuzhou Kibing and KSEC Intelligent

Can any of the company-specific risk be diversified away by investing in both Zhuzhou Kibing and KSEC Intelligent 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 Zhuzhou Kibing and KSEC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zhuzhou Kibing Group and KSEC Intelligent Technology, you can compare the effects of market volatilities on Zhuzhou Kibing and KSEC Intelligent 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 Zhuzhou Kibing with a short position of KSEC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuzhou Kibing and KSEC Intelligent.

Diversification Opportunities for Zhuzhou Kibing and KSEC Intelligent

0.0

Correlation Coefficient

Zhuzhou Kibing  KSEC Intelligent

Pay attention - limited upside

The 3 months correlation between Zhuzhou and KSEC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhuzhou Kibing Group and KSEC Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSEC Intelligent Tec and Zhuzhou Kibing 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 Zhuzhou Kibing Group are associated (or correlated) with KSEC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSEC Intelligent Tec has no effect on the direction of Zhuzhou Kibing i.e., Zhuzhou Kibing and KSEC Intelligent go up and down completely randomly.

Pair Corralation between Zhuzhou Kibing and KSEC Intelligent

If you would invest  0.00  in Zhuzhou Kibing Group on October 14, 2024 and sell it today you would earn a total of  0.00  from holding Zhuzhou Kibing Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Zhuzhou Kibing Group  vs.  KSEC Intelligent Technology

Zhuzhou Kibing Group

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Zhuzhou Kibing Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Zhuzhou Kibing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

KSEC Intelligent Tec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KSEC Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Zhuzhou Kibing and KSEC Intelligent

The main advantage of trading using opposite Zhuzhou Kibing and KSEC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuzhou Kibing position performs unexpectedly, KSEC Intelligent 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 KSEC Intelligent will offset losses from the drop in KSEC Intelligent's long position.

The idea behind Zhuzhou Kibing Group and KSEC Intelligent Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.