Correlation Between Kingsway Financial and China Auto
Can any of the company-specific risk be diversified away by investing in both Kingsway Financial and China Auto 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 Kingsway Financial and China Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsway Financial Services and China Auto Logistics, you can compare the effects of market volatilities on Kingsway Financial and China Auto 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 Kingsway Financial with a short position of China Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsway Financial and China Auto.
Diversification Opportunities for Kingsway Financial and China Auto
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kingsway and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kingsway Financial Services and China Auto Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Auto Logistics and Kingsway Financial 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 Kingsway Financial Services are associated (or correlated) with China Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Auto Logistics has no effect on the direction of Kingsway Financial i.e., Kingsway Financial and China Auto go up and down completely randomly.
Pair Corralation between Kingsway Financial and China Auto
If you would invest (100.00) in China Auto Logistics on December 30, 2023 and sell it today you would earn a total of 100.00 from holding China Auto Logistics or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Kingsway Financial Services vs. China Auto Logistics
Performance |
Timeline |
Kingsway Financial |
China Auto Logistics |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Kingsway Financial and China Auto Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kingsway Financial and China Auto
The main advantage of trading using opposite Kingsway Financial and China Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsway Financial position performs unexpectedly, China Auto 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 China Auto will offset losses from the drop in China Auto's long position.Kingsway Financial vs. Driven Brands Holdings | Kingsway Financial vs. Camping World Holdings | Kingsway Financial vs. Group 1 Automotive | Kingsway Financial vs. CarMax Inc |
China Auto vs. Highway Holdings Limited | China Auto vs. MYT Netherlands Parent | China Auto vs. Genuine Parts Co | China Auto vs. Enersys |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |