Correlation Between GRIPM Advanced and King Strong
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By analyzing existing cross correlation between GRIPM Advanced Materials and King Strong New Material, you can compare the effects of market volatilities on GRIPM Advanced and King Strong 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 GRIPM Advanced with a short position of King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and King Strong.
Diversification Opportunities for GRIPM Advanced and King Strong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRIPM and King is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and King Strong go up and down completely randomly.
Pair Corralation between GRIPM Advanced and King Strong
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 0.91 times more return on investment than King Strong. However, GRIPM Advanced Materials is 1.1 times less risky than King Strong. It trades about 0.16 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.04 per unit of risk. If you would invest 3,155 in GRIPM Advanced Materials on September 26, 2024 and sell it today you would earn a total of 292.00 from holding GRIPM Advanced Materials or generate 9.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GRIPM Advanced Materials vs. King Strong New Material
Performance |
Timeline |
GRIPM Advanced Materials |
King Strong New |
GRIPM Advanced and King Strong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIPM Advanced and King Strong
The main advantage of trading using opposite GRIPM Advanced and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
King Strong vs. Bank of China | King Strong vs. Kweichow Moutai Co | King Strong vs. PetroChina Co Ltd | King Strong vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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