Correlation Between Yuan Longping and Keli Sensing
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By analyzing existing cross correlation between Yuan Longping High tech and Keli Sensing Technology, you can compare the effects of market volatilities on Yuan Longping and Keli Sensing 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 Yuan Longping with a short position of Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Keli Sensing.
Diversification Opportunities for Yuan Longping and Keli Sensing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuan and Keli is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Yuan Longping i.e., Yuan Longping and Keli Sensing go up and down completely randomly.
Pair Corralation between Yuan Longping and Keli Sensing
Assuming the 90 days trading horizon Yuan Longping is expected to generate 16.49 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Yuan Longping High tech is 2.57 times less risky than Keli Sensing. It trades about 0.05 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,661 in Keli Sensing Technology on September 3, 2024 and sell it today you would earn a total of 1,443 from holding Keli Sensing Technology or generate 39.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Keli Sensing Technology
Performance |
| Timeline |
| Yuan Longping High |
| Keli Sensing Technology |
Yuan Longping and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Keli Sensing
The main advantage of trading using opposite Yuan Longping and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Yuan Longping vs. Beijing Wantai Biological | Yuan Longping vs. Aluminum Corp of | Yuan Longping vs. COL Digital Publishing | Yuan Longping vs. Shaanxi Meineng Clean |
| Keli Sensing vs. Zhongtong Guomai Communication | Keli Sensing vs. Anhui Fuhuang Steel | Keli Sensing vs. Jonjee Hi tech Industrial | Keli Sensing vs. Dongjiang Environmental 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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