Correlation Between Kangyue Technology and Zhejiang Huatong
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By analyzing existing cross correlation between Kangyue Technology Co and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Kangyue Technology and Zhejiang Huatong 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 Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Zhejiang Huatong.
Diversification Opportunities for Kangyue Technology and Zhejiang Huatong
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Zhejiang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Kangyue Technology and Zhejiang Huatong
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Zhejiang Huatong. But the stock apears to be less risky and, when comparing its historical volatility, Kangyue Technology Co is 1.15 times less risky than Zhejiang Huatong. The stock trades about -0.06 of its potential returns per unit of risk. The Zhejiang Huatong Meat is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,266 in Zhejiang Huatong Meat on September 24, 2024 and sell it today you would earn a total of 78.00 from holding Zhejiang Huatong Meat or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Zhejiang Huatong Meat
Performance |
| Timeline |
| Kangyue Technology |
| Zhejiang Huatong Meat |
Kangyue Technology and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Zhejiang Huatong
The main advantage of trading using opposite Kangyue Technology and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Zhejiang Huatong 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 Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Kangyue Technology vs. Ming Yang Smart | Kangyue Technology vs. 159681 | Kangyue Technology vs. 159005 | Kangyue Technology vs. Loctek Ergonomic Technology |
| Zhejiang Huatong vs. Ming Yang Smart | Zhejiang Huatong vs. 159681 | Zhejiang Huatong vs. 159005 | Zhejiang Huatong vs. Loctek Ergonomic Technology |
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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