Correlation Between Kingclean Electric and Nanjing Putian
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By analyzing existing cross correlation between Kingclean Electric Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Kingclean Electric and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Nanjing Putian.
Diversification Opportunities for Kingclean Electric and Nanjing Putian
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingclean and Nanjing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Kingclean Electric i.e., Kingclean Electric and Nanjing Putian go up and down completely randomly.
Pair Corralation between Kingclean Electric and Nanjing Putian
Assuming the 90 days trading horizon Kingclean Electric Co is expected to generate 0.29 times more return on investment than Nanjing Putian. However, Kingclean Electric Co is 3.45 times less risky than Nanjing Putian. It trades about 0.05 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.07 per unit of risk. If you would invest 2,263 in Kingclean Electric Co on September 25, 2024 and sell it today you would earn a total of 30.00 from holding Kingclean Electric Co or generate 1.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kingclean Electric Co vs. Nanjing Putian Telecommunicati
Performance |
Timeline |
Kingclean Electric |
Nanjing Putian Telec |
Kingclean Electric and Nanjing Putian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kingclean Electric and Nanjing Putian
The main advantage of trading using opposite Kingclean Electric and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.Kingclean Electric vs. Industrial and Commercial | Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. Agricultural Bank of | Kingclean Electric vs. China Mobile Limited |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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