Correlation Between Guangzhou Haige and Kangyue Technology
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By analyzing existing cross correlation between Guangzhou Haige Communications and Kangyue Technology Co, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Kangyue Technology.
Diversification Opportunities for Guangzhou Haige and Kangyue Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Kangyue is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Kangyue Technology go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Kangyue Technology
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.58 times more return on investment than Kangyue Technology. However, Guangzhou Haige Communications is 1.73 times less risky than Kangyue Technology. It trades about -0.2 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.15 per unit of risk. If you would invest 1,153 in Guangzhou Haige Communications on October 25, 2024 and sell it today you would lose (110.00) from holding Guangzhou Haige Communications or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Kangyue Technology Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Kangyue Technology |
Guangzhou Haige and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Kangyue Technology
The main advantage of trading using opposite Guangzhou Haige and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Anhui Jianghuai Automobile | Guangzhou Haige vs. CIMC Vehicles Co | Guangzhou Haige vs. Road Environment Technology | Guangzhou Haige vs. Zhengping RoadBridge Constr |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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