Correlation Between Kangping Technology and Fujian Nanwang
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By analyzing existing cross correlation between Kangping Technology Co and Fujian Nanwang Environment, you can compare the effects of market volatilities on Kangping Technology and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Fujian Nanwang.
Diversification Opportunities for Kangping Technology and Fujian Nanwang
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kangping and Fujian is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Kangping Technology i.e., Kangping Technology and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Kangping Technology and Fujian Nanwang
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.05 times more return on investment than Fujian Nanwang. However, Kangping Technology is 1.05 times more volatile than Fujian Nanwang Environment. It trades about 0.03 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.0 per unit of risk. If you would invest 2,124 in Kangping Technology Co on October 30, 2024 and sell it today you would earn a total of 61.00 from holding Kangping Technology Co or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Kangping Technology |
| Fujian Nanwang Envir |
Kangping Technology and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Fujian Nanwang
The main advantage of trading using opposite Kangping Technology and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Kangping Technology vs. Tsingtao Brewery Co | Kangping Technology vs. Unisplendour Corp | Kangping Technology vs. City Development Environment | Kangping Technology vs. Ningbo Tech Bank Co |
| Fujian Nanwang vs. Bomesc Offshore Engineering | Fujian Nanwang vs. Lutian Machinery Co | Fujian Nanwang vs. Baoding Dongli Machinery | Fujian Nanwang vs. Puya Semiconductor Shanghai |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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