Correlation Between Kangyue Technology and Shenzhen Hifuture
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By analyzing existing cross correlation between Kangyue Technology Co and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Kangyue Technology and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Shenzhen Hifuture.
Diversification Opportunities for Kangyue Technology and Shenzhen Hifuture
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kangyue and Shenzhen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Kangyue Technology and Shenzhen Hifuture
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 1.78 times more return on investment than Shenzhen Hifuture. However, Kangyue Technology is 1.78 times more volatile than Shenzhen Hifuture Electric. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.02 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 | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kangyue Technology Co vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Kangyue Technology |
| Shenzhen Hifuture |
Kangyue Technology and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Shenzhen Hifuture
The main advantage of trading using opposite Kangyue Technology and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture'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 |
| Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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