Correlation Between Kangyue Technology and Zhejiang Yinlun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangyue Technology Co and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Kangyue Technology and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Zhejiang Yinlun.
Diversification Opportunities for Kangyue Technology and Zhejiang Yinlun
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kangyue and Zhejiang is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Kangyue Technology and Zhejiang Yinlun
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 2.85 times more return on investment than Zhejiang Yinlun. However, Kangyue Technology is 2.85 times more volatile than Zhejiang Yinlun Machinery. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.05 per unit of risk. If you would invest 316.00 in Kangyue Technology Co on November 3, 2024 and sell it today you would earn a total of 60.00 from holding Kangyue Technology Co or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Kangyue Technology |
| Zhejiang Yinlun Machinery |
Kangyue Technology and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Zhejiang Yinlun
The main advantage of trading using opposite Kangyue Technology and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Kangyue Technology vs. Inspur Software Co | Kangyue Technology vs. Central Plains Environment | Kangyue Technology vs. Shengyuan Environmental Protection | Kangyue Technology vs. Fujian Nanwang Environment |
| Zhejiang Yinlun vs. Lier Chemical Co | Zhejiang Yinlun vs. Maoming Petro Chemical Shihua | Zhejiang Yinlun vs. Xinxiang Chemical Fiber | Zhejiang Yinlun vs. Guangzhou Jointas Chemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |