Correlation Between Kangping Technology and Sungrow Power
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By analyzing existing cross correlation between Kangping Technology Co and Sungrow Power Supply, you can compare the effects of market volatilities on Kangping Technology and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Sungrow Power.
Diversification Opportunities for Kangping Technology and Sungrow Power
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangping and Sungrow is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Kangping Technology i.e., Kangping Technology and Sungrow Power go up and down completely randomly.
Pair Corralation between Kangping Technology and Sungrow Power
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 0.85 times more return on investment than Sungrow Power. However, Kangping Technology Co is 1.18 times less risky than Sungrow Power. It trades about 0.24 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about -0.17 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kangping Technology Co vs. Sungrow Power Supply
Performance |
| Timeline |
| Kangping Technology |
| Sungrow Power Supply |
Kangping Technology and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Sungrow Power
The main advantage of trading using opposite Kangping Technology and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power'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 |
| Sungrow Power vs. Do Fluoride Chemicals Co | Sungrow Power vs. Hubei Huaqiang High Tech | Sungrow Power vs. Holitech Technology Co | Sungrow Power vs. Kangping 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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