Correlation Between Kangyue Technology and Shenzhen Inovance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangyue Technology Co and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Kangyue Technology and Shenzhen Inovance 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 Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Shenzhen Inovance.
Diversification Opportunities for Kangyue Technology and Shenzhen Inovance
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Kangyue Technology and Shenzhen Inovance
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Shenzhen Inovance. In addition to that, Kangyue Technology is 2.04 times more volatile than Shenzhen Inovance Tech. It trades about -0.34 of its total potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.06 per unit of volatility. If you would invest 5,902 in Shenzhen Inovance Tech on September 28, 2024 and sell it today you would earn a total of 106.00 from holding Shenzhen Inovance Tech or generate 1.8% 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. Shenzhen Inovance Tech
Performance |
| Timeline |
| Kangyue Technology |
| Shenzhen Inovance Tech |
Kangyue Technology and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Shenzhen Inovance
The main advantage of trading using opposite Kangyue Technology and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Kangyue Technology vs. Ming Yang Smart | Kangyue Technology vs. 159681 | Kangyue Technology vs. 159005 | Kangyue Technology vs. Loctek Ergonomic Technology |
| Shenzhen Inovance vs. Innovative Medical Management | Shenzhen Inovance vs. Gifore Agricultural Machinery | Shenzhen Inovance vs. JCHX Mining Management | Shenzhen Inovance vs. Long Yuan Construction |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |