Correlation Between Kangyue Technology and Beijing Sanyuan
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By analyzing existing cross correlation between Kangyue Technology Co and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Kangyue Technology and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Beijing Sanyuan.
Diversification Opportunities for Kangyue Technology and Beijing Sanyuan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Kangyue Technology and Beijing Sanyuan
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Beijing Sanyuan. In addition to that, Kangyue Technology is 2.96 times more volatile than Beijing Sanyuan Foods. It trades about -0.14 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.26 per unit of volatility. If you would invest 444.00 in Beijing Sanyuan Foods on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Beijing Sanyuan Foods or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Kangyue Technology |
| Beijing Sanyuan Foods |
Kangyue Technology and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Beijing Sanyuan
The main advantage of trading using opposite Kangyue Technology and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Gome Telecom Equipment | Kangyue Technology vs. Holitech Technology Co | Kangyue Technology vs. Zotye Automobile Co |
| Beijing Sanyuan vs. Nanjing Putian Telecommunications | Beijing Sanyuan vs. Tianjin Realty Development | Beijing Sanyuan vs. Kangyue Technology Co | Beijing Sanyuan vs. Shenzhen Hifuture Electric |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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