Correlation Between Kangping Technology and Renxin New
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By analyzing existing cross correlation between Kangping Technology Co and Renxin New Material, you can compare the effects of market volatilities on Kangping Technology and Renxin New 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Renxin New.
Diversification Opportunities for Kangping Technology and Renxin New
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Renxin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Kangping Technology i.e., Kangping Technology and Renxin New go up and down completely randomly.
Pair Corralation between Kangping Technology and Renxin New
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 0.94 times more return on investment than Renxin New. However, Kangping Technology Co is 1.07 times less risky than Renxin New. It trades about 0.24 of its potential returns per unit of risk. Renxin New Material is currently generating about 0.03 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 | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kangping Technology Co vs. Renxin New Material
Performance |
| Timeline |
| Kangping Technology |
| Renxin New Material |
Kangping Technology and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Renxin New
The main advantage of trading using opposite Kangping Technology and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New'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 |
| Renxin New vs. Lander Sports Development | Renxin New vs. Kangping Technology Co | Renxin New vs. Hengdian Entertainment Co | Renxin New vs. Sportsoul Co Ltd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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