Correlation Between Chengdu Spaceon and Kangyue Technology
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Kangyue Technology Co, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Kangyue Technology.
Diversification Opportunities for Chengdu Spaceon and Kangyue Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Kangyue is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Kangyue Technology go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Kangyue Technology
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 3.03 times less return on investment than Kangyue Technology. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 2.33 times less risky than Kangyue Technology. It trades about 0.11 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Kangyue Technology Co on September 13, 2024 and sell it today you would earn a total of 426.00 from holding Kangyue Technology Co or generate 161.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Kangyue Technology Co
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Kangyue Technology |
Chengdu Spaceon and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Kangyue Technology
The main advantage of trading using opposite Chengdu Spaceon and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Ningbo Ligong Online | Chengdu Spaceon vs. Sichuan Yahua Industrial | Chengdu Spaceon vs. Shenzhen Topway Video | Chengdu Spaceon vs. Keda Clean Energy |
| Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Gome Telecom Equipment | Kangyue Technology vs. Holitech Technology Co | Kangyue Technology vs. Zotye Automobile Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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