Correlation Between Kangping Technology and NAURA Technology
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By analyzing existing cross correlation between Kangping Technology Co and NAURA Technology Group, you can compare the effects of market volatilities on Kangping Technology and NAURA 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 Kangping Technology with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and NAURA Technology.
Diversification Opportunities for Kangping Technology and NAURA Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangping and NAURA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology 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 NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Kangping Technology i.e., Kangping Technology and NAURA Technology go up and down completely randomly.
Pair Corralation between Kangping Technology and NAURA Technology
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.33 times more return on investment than NAURA Technology. However, Kangping Technology is 1.33 times more volatile than NAURA Technology Group. It trades about 0.08 of its potential returns per unit of risk. NAURA Technology Group is currently generating about -0.25 per unit of risk. If you would invest 2,150 in Kangping Technology Co on September 19, 2024 and sell it today you would earn a total of 74.00 from holding Kangping Technology Co or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. NAURA Technology Group
Performance |
| Timeline |
| Kangping Technology |
| NAURA Technology |
Kangping Technology and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and NAURA Technology
The main advantage of trading using opposite Kangping Technology and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, NAURA 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. China Construction Bank | Kangping Technology vs. Bank of China |
| NAURA Technology vs. Kangping Technology Co | NAURA Technology vs. Guangzhou KingTeller Technology | NAURA Technology vs. Linewell Software Co | NAURA Technology vs. Fujian Longzhou Transportation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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