Correlation Between Kangyue Technology and Nanjing Putian
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By analyzing existing cross correlation between Kangyue Technology Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Kangyue Technology and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Nanjing Putian.
Diversification Opportunities for Kangyue Technology and Nanjing Putian
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Nanjing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Nanjing Putian go up and down completely randomly.
Pair Corralation between Kangyue Technology and Nanjing Putian
Assuming the 90 days trading horizon Kangyue Technology is expected to generate 2.35 times less return on investment than Nanjing Putian. In addition to that, Kangyue Technology is 1.6 times more volatile than Nanjing Putian Telecommunications. It trades about 0.05 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.18 per unit of volatility. If you would invest 199.00 in Nanjing Putian Telecommunications on November 2, 2024 and sell it today you would earn a total of 189.00 from holding Nanjing Putian Telecommunications or generate 94.97% 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. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Kangyue Technology |
| Nanjing Putian Telec |
Kangyue Technology and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Nanjing Putian
The main advantage of trading using opposite Kangyue Technology and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Kangyue Technology vs. Shaanxi Energy Investment | Kangyue Technology vs. Jointo Energy Investment | Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Guocheng Mining Co |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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