Correlation Between Changzhou Evergreen and Kangping Technology
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By analyzing existing cross correlation between Changzhou Evergreen Technology and Kangping Technology Co, you can compare the effects of market volatilities on Changzhou Evergreen 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 Changzhou Evergreen with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Evergreen and Kangping Technology.
Diversification Opportunities for Changzhou Evergreen and Kangping Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changzhou and Kangping is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Evergreen Technology and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Changzhou Evergreen 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 Changzhou Evergreen Technology 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 Changzhou Evergreen i.e., Changzhou Evergreen and Kangping Technology go up and down completely randomly.
Pair Corralation between Changzhou Evergreen and Kangping Technology
Assuming the 90 days trading horizon Changzhou Evergreen Technology is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Changzhou Evergreen Technology is 1.19 times less risky than Kangping Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,818 in Kangping Technology Co on September 3, 2024 and sell it today you would earn a total of 562.00 from holding Kangping Technology Co or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changzhou Evergreen Technology vs. Kangping Technology Co
Performance |
| Timeline |
| Changzhou Evergreen |
| Kangping Technology |
Changzhou Evergreen and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changzhou Evergreen and Kangping Technology
The main advantage of trading using opposite Changzhou Evergreen and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Evergreen 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.| Changzhou Evergreen vs. Cultural Investment Holdings | Changzhou Evergreen vs. Gome Telecom Equipment | Changzhou Evergreen vs. Bus Online Co | Changzhou Evergreen vs. Holitech Technology Co |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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