Correlation Between Kangping Technology and ZTE Corp
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By analyzing existing cross correlation between Kangping Technology Co and ZTE Corp, you can compare the effects of market volatilities on Kangping Technology and ZTE Corp 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 Kangping Technology with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and ZTE Corp.
Diversification Opportunities for Kangping Technology and ZTE Corp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and ZTE is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Kangping 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 Kangping Technology Co are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Kangping Technology i.e., Kangping Technology and ZTE Corp go up and down completely randomly.
Pair Corralation between Kangping Technology and ZTE Corp
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.11 times more return on investment than ZTE Corp. However, Kangping Technology is 1.11 times more volatile than ZTE Corp. It trades about 0.03 of its potential returns per unit of risk. ZTE Corp is currently generating about 0.03 per unit of risk. If you would invest 1,867 in Kangping Technology Co on September 2, 2024 and sell it today you would earn a total of 513.00 from holding Kangping Technology Co or generate 27.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. ZTE Corp
Performance |
| Timeline |
| Kangping Technology |
| ZTE Corp |
Kangping Technology and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and ZTE Corp
The main advantage of trading using opposite Kangping Technology and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Kangping Technology vs. Cultural Investment Holdings | Kangping Technology vs. Gome Telecom Equipment | Kangping Technology vs. Bus Online Co | Kangping Technology vs. Holitech Technology Co |
| ZTE Corp vs. Anhui Huaertai Chemical | ZTE Corp vs. Kangping Technology Co | ZTE Corp vs. Kuang Chi Technologies | ZTE Corp vs. Guangzhou Jointas Chemical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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