Correlation Between Kangping Technology and Sunwave Communications
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By analyzing existing cross correlation between Kangping Technology Co and Sunwave Communications Co, you can compare the effects of market volatilities on Kangping Technology and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Sunwave Communications.
Diversification Opportunities for Kangping Technology and Sunwave Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Sunwave is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Kangping Technology i.e., Kangping Technology and Sunwave Communications go up and down completely randomly.
Pair Corralation between Kangping Technology and Sunwave Communications
Assuming the 90 days trading horizon Kangping Technology is expected to generate 1.21 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Kangping Technology Co is 1.08 times less risky than Sunwave Communications. It trades about 0.03 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 488.00 in Sunwave Communications Co on August 29, 2024 and sell it today you would earn a total of 177.00 from holding Sunwave Communications Co or generate 36.27% 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. Sunwave Communications Co
Performance |
| Timeline |
| Kangping Technology |
| Sunwave Communications |
Kangping Technology and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Sunwave Communications
The main advantage of trading using opposite Kangping Technology and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' 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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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