Correlation Between Kangping Technology and Guosheng Financial
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By analyzing existing cross correlation between Kangping Technology Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Kangping Technology and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Guosheng Financial.
Diversification Opportunities for Kangping Technology and Guosheng Financial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Guosheng is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Kangping Technology i.e., Kangping Technology and Guosheng Financial go up and down completely randomly.
Pair Corralation between Kangping Technology and Guosheng Financial
Assuming the 90 days trading horizon Kangping Technology is expected to generate 1.38 times less return on investment than Guosheng Financial. In addition to that, Kangping Technology is 1.14 times more volatile than Guosheng Financial Holding. It trades about 0.03 of its total potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.05 per unit of volatility. If you would invest 947.00 in Guosheng Financial Holding on September 4, 2024 and sell it today you would earn a total of 343.00 from holding Guosheng Financial Holding or generate 36.22% 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. Guosheng Financial Holding
Performance |
| Timeline |
| Kangping Technology |
| Guosheng Financial |
Kangping Technology and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Guosheng Financial
The main advantage of trading using opposite Kangping Technology and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Kangping Technology vs. Biwin Storage Technology | Kangping Technology vs. PetroChina Co Ltd | Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. China Construction Bank |
| Guosheng Financial vs. Holitech Technology Co | Guosheng Financial vs. Kangping Technology Co | Guosheng Financial vs. Niutech Environment Technology | Guosheng Financial vs. Chahua Modern Housewares |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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