Correlation Between Kangyue Technology and Xiwang Foodstuffs
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By analyzing existing cross correlation between Kangyue Technology Co and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Kangyue Technology and Xiwang Foodstuffs 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 Kangyue Technology with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Xiwang Foodstuffs.
Diversification Opportunities for Kangyue Technology and Xiwang Foodstuffs
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Xiwang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Kangyue Technology 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 Kangyue Technology Co are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Kangyue Technology and Xiwang Foodstuffs
Assuming the 90 days trading horizon Kangyue Technology is expected to generate 206.71 times less return on investment than Xiwang Foodstuffs. In addition to that, Kangyue Technology is 1.08 times more volatile than Xiwang Foodstuffs Co. It trades about 0.0 of its total potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about 0.28 per unit of volatility. If you would invest 403.00 in Xiwang Foodstuffs Co on September 14, 2024 and sell it today you would earn a total of 99.00 from holding Xiwang Foodstuffs Co or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Kangyue Technology |
| Xiwang Foodstuffs |
Kangyue Technology and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Xiwang Foodstuffs
The main advantage of trading using opposite Kangyue Technology and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| 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 |
| Xiwang Foodstuffs vs. Heilongjiang Transport Development | Xiwang Foodstuffs vs. Huaibei Mining Holdings | Xiwang Foodstuffs vs. Guangdong Silvere Sci | Xiwang Foodstuffs vs. Sichuan Fulin Transportation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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