Correlation Between Shandong Longquan and Kangyue Technology
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Kangyue Technology Co, you can compare the effects of market volatilities on Shandong Longquan 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 Shandong Longquan with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Kangyue Technology.
Diversification Opportunities for Shandong Longquan and Kangyue Technology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Kangyue is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Shandong Longquan 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 Shandong Longquan Pipeline 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 Shandong Longquan i.e., Shandong Longquan and Kangyue Technology go up and down completely randomly.
Pair Corralation between Shandong Longquan and Kangyue Technology
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 0.27 times more return on investment than Kangyue Technology. However, Shandong Longquan Pipeline is 3.76 times less risky than Kangyue Technology. It trades about 0.44 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.27 per unit of risk. If you would invest 430.00 in Shandong Longquan Pipeline on November 6, 2024 and sell it today you would earn a total of 44.00 from holding Shandong Longquan Pipeline or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Kangyue Technology Co
Performance |
| Timeline |
| Shandong Longquan |
| Kangyue Technology |
Shandong Longquan and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Kangyue Technology
The main advantage of trading using opposite Shandong Longquan and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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.| Shandong Longquan vs. Linktel Technologies Co | Shandong Longquan vs. Kailong High Technology | Shandong Longquan vs. Glodon Software Co | Shandong Longquan vs. Eyebright Medical Technology |
| Kangyue Technology vs. Liaoning Dingjide Petrochemical | Kangyue Technology vs. Dhc Software Co | Kangyue Technology vs. Hangzhou Arcvideo Technology | Kangyue Technology vs. Guizhou Chanhen Chemical |
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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