Correlation Between Shenzhen Kexin and Kangyue Technology
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Kangyue Technology Co, you can compare the effects of market volatilities on Shenzhen Kexin and Kangyue Technology 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 Shenzhen Kexin with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Kangyue Technology.
Diversification Opportunities for Shenzhen Kexin and Kangyue Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Kangyue is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Shenzhen Kexin 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 Shenzhen Kexin Communication are associated (or correlated) with Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Shenzhen Kexin i.e., Shenzhen Kexin and Kangyue Technology go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Kangyue Technology
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.38 times less risky than Kangyue Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 983.00 in Kangyue Technology Co on October 14, 2024 and sell it today you would lose (529.00) from holding Kangyue Technology Co or give up 53.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Kangyue Technology Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Kangyue Technology |
Shenzhen Kexin and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Kangyue Technology
The main advantage of trading using opposite Shenzhen Kexin and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Shenzhen Kexin vs. RoadMain T Co | Shenzhen Kexin vs. Yankershop Food Co | Shenzhen Kexin vs. Eastroc Beverage Group | Shenzhen Kexin vs. Zhengping RoadBridge Constr |
| Kangyue Technology vs. Omnijoi Media Corp | Kangyue Technology vs. Anhui Xinhua Media | Kangyue Technology vs. Jilin Jlu Communication | Kangyue Technology vs. State Grid InformationCommunication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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