Correlation Between Kangyue Technology and Huayi Brothers
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By analyzing existing cross correlation between Kangyue Technology Co and Huayi Brothers Media, you can compare the effects of market volatilities on Kangyue Technology and Huayi Brothers 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 Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Huayi Brothers.
Diversification Opportunities for Kangyue Technology and Huayi Brothers
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Huayi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media 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 Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Huayi Brothers go up and down completely randomly.
Pair Corralation between Kangyue Technology and Huayi Brothers
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Huayi Brothers. In addition to that, Kangyue Technology is 1.3 times more volatile than Huayi Brothers Media. It trades about -0.59 of its total potential returns per unit of risk. Huayi Brothers Media is currently generating about -0.68 per unit of volatility. If you would invest 355.00 in Huayi Brothers Media on October 13, 2024 and sell it today you would lose (121.00) from holding Huayi Brothers Media or give up 34.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kangyue Technology Co vs. Huayi Brothers Media
Performance |
| Timeline |
| Kangyue Technology |
| Huayi Brothers Media |
Kangyue Technology and Huayi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Huayi Brothers
The main advantage of trading using opposite Kangyue Technology and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' long position.| Kangyue Technology vs. Omnijoi Media Corp | Kangyue Technology vs. Anhui Xinhua Media | Kangyue Technology vs. Jilin Jlu Communication | Kangyue Technology vs. State Grid InformationCommunication |
| Huayi Brothers vs. Chengtun Mining Group | Huayi Brothers vs. Longxing Chemical Stock | Huayi Brothers vs. Guizhou Chanhen Chemical | Huayi Brothers vs. Xiangtan Electrochemical Scientific |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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