Correlation Between Code Green and Kingboard Chemical

Can any of the company-specific risk be diversified away by investing in both Code Green and Kingboard Chemical 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 Code Green and Kingboard Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Code Green Apparel and Kingboard Chemical Holdings, you can compare the effects of market volatilities on Code Green and Kingboard Chemical 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 Code Green with a short position of Kingboard Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Code Green and Kingboard Chemical.

Diversification Opportunities for Code Green and Kingboard Chemical

-0.13

Correlation Coefficient

Code Green  Kingboard Chemical

Good diversification

The 3 months correlation between Code and Kingboard is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Code Green Apparel and Kingboard Chemical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingboard Chemical and Code Green 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 Code Green Apparel are associated (or correlated) with Kingboard Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingboard Chemical has no effect on the direction of Code Green i.e., Code Green and Kingboard Chemical go up and down completely randomly.

Pair Corralation between Code Green and Kingboard Chemical

Given the investment horizon of 90 days Code Green Apparel is expected to generate 6.45 times more return on investment than Kingboard Chemical. However, Code Green is 6.45 times more volatile than Kingboard Chemical Holdings. It trades about 0.03 of its potential returns per unit of risk. Kingboard Chemical Holdings is currently generating about 0.09 per unit of risk. If you would invest  0.03  in Code Green Apparel on May 25, 2025 and sell it today you would lose (0.02) from holding Code Green Apparel or give up 66.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Code Green Apparel  vs.  Kingboard Chemical Holdings

Code Green Apparel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Code Green Apparel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Code Green exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kingboard Chemical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Kingboard Chemical Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Kingboard Chemical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Code Green and Kingboard Chemical

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

The idea behind Code Green Apparel and Kingboard Chemical Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.