Correlation Between Shenzhen Hifuture and Kangyue Technology
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Kangyue Technology Co, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Kangyue Technology.
Diversification Opportunities for Shenzhen Hifuture and Kangyue Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Kangyue is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Kangyue Technology go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Kangyue Technology
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 2.08 times less risky than Kangyue Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Kangyue Technology Co on November 2, 2024 and sell it today you would earn a total of 36.00 from holding Kangyue Technology Co or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.98% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Kangyue Technology Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Kangyue Technology |
Shenzhen Hifuture and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Kangyue Technology
The main advantage of trading using opposite Shenzhen Hifuture and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Tjk Machinery Tianjin | Shenzhen Hifuture vs. Anhui Huilong Agricultural | Shenzhen Hifuture vs. Senci Electric Machinery | Shenzhen Hifuture vs. Sunny Loan Top |
| Kangyue Technology vs. Shaanxi Energy Investment | Kangyue Technology vs. Jointo Energy Investment | Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Guocheng Mining 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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