Correlation Between Kangyue Technology and Wangneng Environment
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By analyzing existing cross correlation between Kangyue Technology Co and Wangneng Environment Co, you can compare the effects of market volatilities on Kangyue Technology and Wangneng Environment 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 Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Wangneng Environment.
Diversification Opportunities for Kangyue Technology and Wangneng Environment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Wangneng is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment 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 Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Wangneng Environment go up and down completely randomly.
Pair Corralation between Kangyue Technology and Wangneng Environment
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 3.5 times more return on investment than Wangneng Environment. However, Kangyue Technology is 3.5 times more volatile than Wangneng Environment Co. It trades about 0.01 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about 0.0 per unit of risk. If you would invest 1,010 in Kangyue Technology Co on September 14, 2024 and sell it today you would lose (293.00) from holding Kangyue Technology Co or give up 29.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Wangneng Environment Co
Performance |
| Timeline |
| Kangyue Technology |
| Wangneng Environment |
Kangyue Technology and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Wangneng Environment
The main advantage of trading using opposite Kangyue Technology and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's 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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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