Correlation Between Kangping Technology and Yuan Longping
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By analyzing existing cross correlation between Kangping Technology Co and Yuan Longping High tech, you can compare the effects of market volatilities on Kangping Technology and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Yuan Longping.
Diversification Opportunities for Kangping Technology and Yuan Longping
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Yuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Kangping Technology i.e., Kangping Technology and Yuan Longping go up and down completely randomly.
Pair Corralation between Kangping Technology and Yuan Longping
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.58 times more return on investment than Yuan Longping. However, Kangping Technology is 1.58 times more volatile than Yuan Longping High tech. It trades about 0.03 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.03 per unit of risk. If you would invest 1,831 in Kangping Technology Co on August 29, 2024 and sell it today you would earn a total of 517.00 from holding Kangping Technology Co or generate 28.24% 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. Yuan Longping High tech
Performance |
| Timeline |
| Kangping Technology |
| Yuan Longping High |
Kangping Technology and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Yuan Longping
The main advantage of trading using opposite Kangping Technology and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Kangping Technology vs. Shanxi Lanhua Sci Tech | Kangping Technology vs. Zoje Resources Investment | Kangping Technology vs. Jointo Energy Investment | Kangping Technology vs. Hunan Investment Group |
| Yuan Longping vs. PetroChina Co Ltd | Yuan Longping vs. China Mobile Limited | Yuan Longping vs. Ping An Insurance | Yuan Longping vs. China Petroleum 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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