Correlation Between Kangyue Technology and Shandong Sinoglory
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By analyzing existing cross correlation between Kangyue Technology Co and Shandong Sinoglory Health, you can compare the effects of market volatilities on Kangyue Technology and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Shandong Sinoglory.
Diversification Opportunities for Kangyue Technology and Shandong Sinoglory
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangyue and Shandong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Kangyue Technology and Shandong Sinoglory
Assuming the 90 days trading horizon Kangyue Technology Co is expected to generate 3.3 times more return on investment than Shandong Sinoglory. However, Kangyue Technology is 3.3 times more volatile than Shandong Sinoglory Health. It trades about 0.15 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.2 per unit of risk. If you would invest 494.00 in Kangyue Technology Co on September 13, 2024 and sell it today you would earn a total of 195.00 from holding Kangyue Technology Co or generate 39.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Kangyue Technology |
| Shandong Sinoglory Health |
Kangyue Technology and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Shandong Sinoglory
The main advantage of trading using opposite Kangyue Technology and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory'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 |
| Shandong Sinoglory vs. Nanjing Putian Telecommunications | Shandong Sinoglory vs. Tianjin Realty Development | Shandong Sinoglory vs. Kangyue Technology Co | Shandong Sinoglory 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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