Correlation Between Kangyue Technology and Jiangsu Xinning
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By analyzing existing cross correlation between Kangyue Technology Co and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Kangyue Technology and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Jiangsu Xinning.
Diversification Opportunities for Kangyue Technology and Jiangsu Xinning
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Kangyue Technology and Jiangsu Xinning
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 1.29 times more return on investment than Jiangsu Xinning. However, Kangyue Technology is 1.29 times more volatile than Jiangsu Xinning Modern. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.03 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Kangyue Technology |
| Jiangsu Xinning Modern |
Kangyue Technology and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Jiangsu Xinning
The main advantage of trading using opposite Kangyue Technology and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning'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 |
| Jiangsu Xinning vs. Zoje Resources Investment | Jiangsu Xinning vs. Guangzhou Seagull Kitchen | Jiangsu Xinning vs. Harbin Hatou Investment | Jiangsu Xinning vs. Jointo Energy Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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