Correlation Between Cloud Live and Kangyue Technology
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By analyzing existing cross correlation between Cloud Live Technology and Kangyue Technology Co, you can compare the effects of market volatilities on Cloud Live 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 Cloud Live with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Kangyue Technology.
Diversification Opportunities for Cloud Live and Kangyue Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cloud and Kangyue is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Cloud Live 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 Cloud Live Technology 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 Cloud Live i.e., Cloud Live and Kangyue Technology go up and down completely randomly.
Pair Corralation between Cloud Live and Kangyue Technology
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Cloud Live Technology is 1.05 times less risky than Kangyue Technology. The stock trades about -0.37 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 551.00 in Kangyue Technology Co on October 28, 2024 and sell it today you would lose (151.00) from holding Kangyue Technology Co or give up 27.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Kangyue Technology Co
Performance |
| Timeline |
| Cloud Live Technology |
| Kangyue Technology |
Cloud Live and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Kangyue Technology
The main advantage of trading using opposite Cloud Live and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live 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.| Cloud Live vs. Songz Automobile Air | Cloud Live vs. Sinomach Automobile Co | Cloud Live vs. Sihui Fuji Electronics | Cloud Live vs. LianChuang Electronic Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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