Correlation Between Xinjiang Communications and Kangyue Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Kangyue Technology Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Kangyue Technology.
Diversification Opportunities for Xinjiang Communications and Kangyue Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Kangyue is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Kangyue Technology go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Kangyue Technology
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.62 times more return on investment than Kangyue Technology. However, Xinjiang Communications Construction is 1.61 times less risky than Kangyue Technology. It trades about 0.02 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.21 per unit of risk. If you would invest 1,233 in Xinjiang Communications Construction on September 25, 2024 and sell it today you would earn a total of 8.00 from holding Xinjiang Communications Construction or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Kangyue Technology Co
Performance |
| Timeline |
| Xinjiang Communications |
| Kangyue Technology |
Xinjiang Communications and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Kangyue Technology
The main advantage of trading using opposite Xinjiang Communications and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. China Publishing Media | Xinjiang Communications vs. Chengdu B ray Media | Xinjiang Communications vs. Sportsoul Co Ltd | Xinjiang Communications vs. Ziel Home Furnishing |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |