Correlation Between Kangyue Technology and Sichuan Furong
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By analyzing existing cross correlation between Kangyue Technology Co and Sichuan Furong Technology, you can compare the effects of market volatilities on Kangyue Technology and Sichuan Furong 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 Sichuan Furong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Sichuan Furong.
Diversification Opportunities for Kangyue Technology and Sichuan Furong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangyue and Sichuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Sichuan Furong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Furong Technology 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 Sichuan Furong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Furong Technology has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Sichuan Furong go up and down completely randomly.
Pair Corralation between Kangyue Technology and Sichuan Furong
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Sichuan Furong. In addition to that, Kangyue Technology is 1.65 times more volatile than Sichuan Furong Technology. It trades about -0.16 of its total potential returns per unit of risk. Sichuan Furong Technology is currently generating about -0.06 per unit of volatility. If you would invest 1,412 in Sichuan Furong Technology on October 29, 2024 and sell it today you would lose (198.00) from holding Sichuan Furong Technology or give up 14.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Sichuan Furong Technology
Performance |
| Timeline |
| Kangyue Technology |
| Sichuan Furong Technology |
Kangyue Technology and Sichuan Furong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Sichuan Furong
The main advantage of trading using opposite Kangyue Technology and Sichuan Furong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Sichuan Furong 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 Sichuan Furong will offset losses from the drop in Sichuan Furong's long position.| Kangyue Technology vs. Anhui Deli Household | Kangyue Technology vs. StarPower Semiconductor | Kangyue Technology vs. GigaDevice SemiconductorBeiji | Kangyue Technology vs. Hubei Tech Semiconductors |
| Sichuan Furong vs. Agricultural Bank of | Sichuan Furong vs. Industrial and Commercial | Sichuan Furong vs. Bank of China | Sichuan Furong vs. PetroChina Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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