Correlation Between Maoming Petro and Kangyue Technology
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Kangyue Technology Co, you can compare the effects of market volatilities on Maoming Petro and Kangyue 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 Maoming Petro with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Kangyue Technology.
Diversification Opportunities for Maoming Petro and Kangyue Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maoming and Kangyue is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Maoming Petro i.e., Maoming Petro and Kangyue Technology go up and down completely randomly.
Pair Corralation between Maoming Petro and Kangyue Technology
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.69 times more return on investment than Kangyue Technology. However, Maoming Petro Chemical Shihua is 1.44 times less risky than Kangyue Technology. It trades about -0.35 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.47 per unit of risk. If you would invest 427.00 in Maoming Petro Chemical Shihua on October 9, 2024 and sell it today you would lose (72.00) from holding Maoming Petro Chemical Shihua or give up 16.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Kangyue Technology Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Kangyue Technology |
Maoming Petro and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Kangyue Technology
The main advantage of trading using opposite Maoming Petro and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Kangyue 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Maoming Petro vs. China Sports Industry | Maoming Petro vs. Qiaoyin Environmental Tech | Maoming Petro vs. Elite Color Environmental | Maoming Petro vs. Eit Environmental Development |
| Kangyue Technology vs. Shenzhen Kexin Communication | Kangyue Technology vs. Bank of Communications | Kangyue Technology vs. Juneyao Airlines | Kangyue Technology vs. Guangzhou Haige 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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