Correlation Between Hunan Investment and Kangping Technology
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By analyzing existing cross correlation between Hunan Investment Group and Kangping Technology Co, you can compare the effects of market volatilities on Hunan Investment and Kangping Technology 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 Hunan Investment with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Kangping Technology.
Diversification Opportunities for Hunan Investment and Kangping Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Kangping is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Hunan Investment i.e., Hunan Investment and Kangping Technology go up and down completely randomly.
Pair Corralation between Hunan Investment and Kangping Technology
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.88 times more return on investment than Kangping Technology. However, Hunan Investment Group is 1.14 times less risky than Kangping Technology. It trades about 0.1 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.08 per unit of risk. If you would invest 422.00 in Hunan Investment Group on September 1, 2024 and sell it today you would earn a total of 147.00 from holding Hunan Investment Group or generate 34.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Kangping Technology Co
Performance |
| Timeline |
| Hunan Investment |
| Kangping Technology |
Hunan Investment and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Kangping Technology
The main advantage of trading using opposite Hunan Investment and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Hunan Investment vs. Jiangsu Phoenix Publishing | Hunan Investment vs. Union Semiconductor Co | Hunan Investment vs. China Publishing Media | Hunan Investment vs. GigaDevice SemiconductorBeiji |
| Kangping Technology vs. Cultural Investment Holdings | Kangping Technology vs. Gome Telecom Equipment | Kangping Technology vs. Bus Online Co | Kangping Technology vs. Holitech Technology Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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