Correlation Between Kangping Technology and Changzhou Evergreen
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By analyzing existing cross correlation between Kangping Technology Co and Changzhou Evergreen Technology, you can compare the effects of market volatilities on Kangping Technology and Changzhou Evergreen 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 Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Changzhou Evergreen.
Diversification Opportunities for Kangping Technology and Changzhou Evergreen
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Changzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen 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 Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of Kangping Technology i.e., Kangping Technology and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between Kangping Technology and Changzhou Evergreen
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.19 times more return on investment than Changzhou Evergreen. However, Kangping Technology is 1.19 times more volatile than Changzhou Evergreen Technology. It trades about 0.08 of its potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about -0.01 per unit of risk. If you would invest 1,818 in Kangping Technology Co on September 3, 2024 and sell it today you would earn a total of 562.00 from holding Kangping Technology Co or generate 30.91% 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. Changzhou Evergreen Technology
Performance |
| Timeline |
| Kangping Technology |
| Changzhou Evergreen |
Kangping Technology and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Changzhou Evergreen
The main advantage of trading using opposite Kangping Technology and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen'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 |
| Changzhou Evergreen vs. Cultural Investment Holdings | Changzhou Evergreen vs. Gome Telecom Equipment | Changzhou Evergreen vs. Bus Online Co | Changzhou Evergreen vs. Holitech Technology Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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