Correlation Between Sichuan Jinshi and Keeson Technology
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Keeson Technology Corp, you can compare the effects of market volatilities on Sichuan Jinshi and Keeson 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 Sichuan Jinshi with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Keeson Technology.
Diversification Opportunities for Sichuan Jinshi and Keeson Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Keeson is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and Sichuan Jinshi 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 Sichuan Jinshi Technology are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Keeson Technology go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Keeson Technology
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Keeson Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Jinshi Technology is 1.92 times less risky than Keeson Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Keeson Technology Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Keeson Technology Corp on September 24, 2024 and sell it today you would earn a total of 137.00 from holding Keeson Technology Corp or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Keeson Technology Corp
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Keeson Technology Corp |
Sichuan Jinshi and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Keeson Technology
The main advantage of trading using opposite Sichuan Jinshi and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Keeson 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.The idea behind Sichuan Jinshi Technology and Keeson Technology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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