Correlation Between Kangyue Technology and Zhongtong Guomai
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By analyzing existing cross correlation between Kangyue Technology Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Kangyue Technology and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Zhongtong Guomai.
Diversification Opportunities for Kangyue Technology and Zhongtong Guomai
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Zhongtong is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue Technology Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Kangyue Technology i.e., Kangyue Technology and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Kangyue Technology and Zhongtong Guomai
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Zhongtong Guomai. But the stock apears to be less risky and, when comparing its historical volatility, Kangyue Technology Co is 2.01 times less risky than Zhongtong Guomai. The stock trades about -0.57 of its potential returns per unit of risk. The Zhongtong Guomai Communication is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 1,166 in Zhongtong Guomai Communication on October 14, 2024 and sell it today you would lose (373.00) from holding Zhongtong Guomai Communication or give up 31.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Kangyue Technology |
| Zhongtong Guomai Com |
Kangyue Technology and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Zhongtong Guomai
The main advantage of trading using opposite Kangyue Technology and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue Technology position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Kangyue Technology vs. Omnijoi Media Corp | Kangyue Technology vs. Anhui Xinhua Media | Kangyue Technology vs. Jilin Jlu Communication | Kangyue Technology vs. State Grid InformationCommunication |
| Zhongtong Guomai vs. Zhejiang Publishing Media | Zhongtong Guomai vs. COL Digital Publishing | Zhongtong Guomai vs. Xinhua Winshare Publishing | Zhongtong Guomai vs. Guangzhou KingTeller Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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