Correlation Between Westone Information and Kangping Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Westone Information Industry and Kangping Technology Co, you can compare the effects of market volatilities on Westone Information 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 Westone Information with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Kangping Technology.
Diversification Opportunities for Westone Information and Kangping Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Westone and Kangping is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Westone Information 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 Westone Information Industry 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 Westone Information i.e., Westone Information and Kangping Technology go up and down completely randomly.
Pair Corralation between Westone Information and Kangping Technology
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Westone Information Industry is 1.06 times less risky than Kangping Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,712 in Kangping Technology Co on September 14, 2024 and sell it today you would earn a total of 702.00 from holding Kangping Technology Co or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Kangping Technology Co
Performance |
| Timeline |
| Westone Information |
| Kangping Technology |
Westone Information and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Kangping Technology
The main advantage of trading using opposite Westone Information and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information 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.| Westone Information vs. Industrial and Commercial | Westone Information vs. Agricultural Bank of | Westone Information vs. China Construction Bank | Westone Information vs. Bank of China |
| Kangping Technology vs. Guangdong Jinming Machinery | Kangping Technology vs. Shaanxi Meineng Clean | Kangping Technology vs. Gifore Agricultural Machinery | Kangping Technology vs. Eastroc Beverage Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |