Correlation Between Kangyue Technology and Beijing Kaiwen
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By analyzing existing cross correlation between Kangyue Technology Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Kangyue Technology and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Beijing Kaiwen.
Diversification Opportunities for Kangyue Technology and Beijing Kaiwen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Kangyue Technology and Beijing Kaiwen
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Beijing Kaiwen. In addition to that, Kangyue Technology is 1.1 times more volatile than Beijing Kaiwen Education. It trades about -0.1 of its total potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.14 per unit of volatility. If you would invest 524.00 in Beijing Kaiwen Education on September 13, 2024 and sell it today you would earn a total of 65.00 from holding Beijing Kaiwen Education or generate 12.4% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Kangyue Technology |
| Beijing Kaiwen Education |
Kangyue Technology and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Beijing Kaiwen
The main advantage of trading using opposite Kangyue Technology and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen'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 |
| Beijing Kaiwen vs. Shandong Huifa Foodstuff | Beijing Kaiwen vs. Youyou Foods Co | Beijing Kaiwen vs. Aluminum Corp of | Beijing Kaiwen vs. Guangdong Jingyi 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 CEOs Directory module to screen CEOs from public companies around the world.
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