Correlation Between Kingclean Electric and Kuang Chi
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By analyzing existing cross correlation between Kingclean Electric Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Kingclean Electric and Kuang Chi 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 Kingclean Electric with a short position of Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Kuang Chi.
Diversification Opportunities for Kingclean Electric and Kuang Chi
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingclean and Kuang is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies and Kingclean Electric 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 Kingclean Electric Co are associated (or correlated) with Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Kuang Chi go up and down completely randomly.
Pair Corralation between Kingclean Electric and Kuang Chi
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 1.43 times less risky than Kuang Chi. The stock trades about -0.02 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,686 in Kuang Chi Technologies on October 4, 2024 and sell it today you would earn a total of 3,094 from holding Kuang Chi Technologies or generate 183.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kingclean Electric Co vs. Kuang Chi Technologies
Performance |
Timeline |
Kingclean Electric |
Kuang Chi Technologies |
Kingclean Electric and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kingclean Electric and Kuang Chi
The main advantage of trading using opposite Kingclean Electric and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.Kingclean Electric vs. Anhui Gujing Distillery | Kingclean Electric vs. Xinya Electronic Co | Kingclean Electric vs. Suzhou Longway Electronic | Kingclean Electric vs. Newcapec Electronics Co |
Kuang Chi vs. Industrial and Commercial | Kuang Chi vs. China Construction Bank | Kuang Chi vs. Agricultural Bank of | Kuang Chi vs. Bank of China |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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