Correlation Between Kangyue Technology and Shenzhen Changfang
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By analyzing existing cross correlation between Kangyue Technology Co and Shenzhen Changfang Light, you can compare the effects of market volatilities on Kangyue Technology and Shenzhen Changfang 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 Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Shenzhen Changfang.
Diversification Opportunities for Kangyue Technology and Shenzhen Changfang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kangyue and Shenzhen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Kangyue Technology and Shenzhen Changfang
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Shenzhen Changfang. In addition to that, Kangyue Technology is 1.14 times more volatile than Shenzhen Changfang Light. It trades about -0.29 of its total potential returns per unit of risk. Shenzhen Changfang Light is currently generating about 0.12 per unit of volatility. If you would invest 179.00 in Shenzhen Changfang Light on October 20, 2024 and sell it today you would earn a total of 14.00 from holding Shenzhen Changfang Light or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Kangyue Technology |
| Shenzhen Changfang Light |
Kangyue Technology and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Shenzhen Changfang
The main advantage of trading using opposite Kangyue Technology and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Kangyue Technology vs. Kweichow Moutai Co | Kangyue Technology vs. Contemporary Amperex Technology | Kangyue Technology vs. G bits Network Technology | Kangyue Technology vs. Beijing Roborock Technology |
| Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Bank of China | Shenzhen Changfang vs. China Construction Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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