Correlation Between Jiangxi Hengda and Kangping Technology
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Kangping Technology Co, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Kangping Technology.
Diversification Opportunities for Jiangxi Hengda and Kangping Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Kangping is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Kangping Technology go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Kangping Technology
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Kangping Technology. In addition to that, Jiangxi Hengda is 1.06 times more volatile than Kangping Technology Co. It trades about -0.01 of its total potential returns per unit of risk. Kangping Technology Co is currently generating about 0.02 per unit of volatility. If you would invest 1,839 in Kangping Technology Co on October 18, 2024 and sell it today you would earn a total of 290.00 from holding Kangping Technology Co or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Kangping Technology Co
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Kangping Technology |
Jiangxi Hengda and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Kangping Technology
The main advantage of trading using opposite Jiangxi Hengda and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Tieling Newcity Investment | Jiangxi Hengda vs. Chengdu Xingrong Investment | Jiangxi Hengda vs. Henan Shuanghui Investment | Jiangxi Hengda vs. Shenzhen Centralcon Investment |
| Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Bank of China | Kangping Technology vs. China Construction Bank |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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