Correlation Between Western Metal and Keeson Technology
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By analyzing existing cross correlation between Western Metal Materials and Keeson Technology Corp, you can compare the effects of market volatilities on Western Metal and Keeson 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 Western Metal with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Keeson Technology.
Diversification Opportunities for Western Metal and Keeson Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Western and Keeson is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and Western Metal 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 Western Metal Materials are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Western Metal i.e., Western Metal and Keeson Technology go up and down completely randomly.
Pair Corralation between Western Metal and Keeson Technology
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.0 times more return on investment than Keeson Technology. However, Western Metal is 1.0 times more volatile than Keeson Technology Corp. It trades about 0.06 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about 0.01 per unit of risk. If you would invest 1,302 in Western Metal Materials on September 1, 2024 and sell it today you would earn a total of 314.00 from holding Western Metal Materials or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Keeson Technology Corp
Performance |
| Timeline |
| Western Metal Materials |
| Keeson Technology Corp |
Western Metal and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Keeson Technology
The main advantage of trading using opposite Western Metal and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Keeson 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
| Keeson Technology vs. Youyou Foods Co | Keeson Technology vs. HaiXin Foods Co | Keeson Technology vs. Nexchip Semiconductor Corp | Keeson Technology vs. Anhui Gujing Distillery |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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