Correlation Between Kangyue Technology and Ningbo Kangqiang
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By analyzing existing cross correlation between Kangyue Technology Co and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Kangyue Technology and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Ningbo Kangqiang.
Diversification Opportunities for Kangyue Technology and Ningbo Kangqiang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangyue and Ningbo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Kangyue Technology and Ningbo Kangqiang
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 2.02 times more return on investment than Ningbo Kangqiang. However, Kangyue Technology is 2.02 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.03 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.03 per unit of risk. 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 | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kangyue Technology Co vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Kangyue Technology |
| Ningbo Kangqiang Ele |
Kangyue Technology and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Ningbo Kangqiang
The main advantage of trading using opposite Kangyue Technology and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang'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 |
| Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Tianjin Realty Development | Ningbo Kangqiang vs. Kangyue Technology Co | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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