Correlation Between Kangping Technology and Shandong Polymer
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangping Technology Co and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Kangping Technology and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Shandong Polymer.
Diversification Opportunities for Kangping Technology and Shandong Polymer
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangping and Shandong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Kangping Technology i.e., Kangping Technology and Shandong Polymer go up and down completely randomly.
Pair Corralation between Kangping Technology and Shandong Polymer
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 0.58 times more return on investment than Shandong Polymer. However, Kangping Technology Co is 1.73 times less risky than Shandong Polymer. It trades about 0.24 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.08 per unit of risk. If you would invest 2,129 in Kangping Technology Co on September 1, 2024 and sell it today you would earn a total of 251.00 from holding Kangping Technology Co or generate 11.79% 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. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Kangping Technology |
| Shandong Polymer Bio |
Kangping Technology and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Shandong Polymer
The main advantage of trading using opposite Kangping Technology and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer'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 |
| Shandong Polymer vs. Everdisplay Optronics Shanghai | Shandong Polymer vs. Keeson Technology Corp | Shandong Polymer vs. Uxi Unicomp Technology | Shandong Polymer vs. Threes Company Media |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |