Correlation Between Jiangsu Xinning and Kangyue Technology
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Kangyue Technology Co, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Kangyue Technology.
Diversification Opportunities for Jiangsu Xinning and Kangyue Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Kangyue is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Kangyue Technology go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Kangyue Technology
Assuming the 90 days trading horizon Jiangsu Xinning is expected to generate 1.17 times less return on investment than Kangyue Technology. But when comparing it to its historical volatility, Jiangsu Xinning Modern is 1.29 times less risky than Kangyue Technology. It trades about 0.03 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 796.00 in Kangyue Technology Co on September 14, 2024 and sell it today you would lose (79.00) from holding Kangyue Technology Co or give up 9.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Kangyue Technology Co
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Kangyue Technology |
Jiangsu Xinning and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Kangyue Technology
The main advantage of trading using opposite Jiangsu Xinning and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. Zoje Resources Investment | Jiangsu Xinning vs. Guangzhou Seagull Kitchen | Jiangsu Xinning vs. Harbin Hatou Investment | Jiangsu Xinning vs. Jointo Energy Investment |
| Kangyue Technology vs. Sino Platinum Metals Co | Kangyue Technology vs. Hangzhou Pinming Software | Kangyue Technology vs. Guangzhou Seagull Kitchen | Kangyue Technology vs. Zhejiang Yayi Metal |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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