Correlation Between Kangping Technology and Tianjin Hi
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By analyzing existing cross correlation between Kangping Technology Co and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Kangping Technology and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Tianjin Hi.
Diversification Opportunities for Kangping Technology and Tianjin Hi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Tianjin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Kangping Technology i.e., Kangping Technology and Tianjin Hi go up and down completely randomly.
Pair Corralation between Kangping Technology and Tianjin Hi
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.14 times more return on investment than Tianjin Hi. However, Kangping Technology is 1.14 times more volatile than Tianjin Hi Tech Development. It trades about 0.03 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 1,865 in Kangping Technology Co on August 26, 2024 and sell it today you would earn a total of 399.00 from holding Kangping Technology Co or generate 21.39% 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. Tianjin Hi Tech Development
Performance |
| Timeline |
| Kangping Technology |
| Tianjin Hi Tech |
Kangping Technology and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Tianjin Hi
The main advantage of trading using opposite Kangping Technology and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Kangping Technology vs. Kweichow Moutai Co | Kangping Technology vs. Shenzhen Mindray Bio Medical | Kangping Technology vs. Jiangsu Pacific Quartz | Kangping Technology vs. G bits Network Technology |
| Tianjin Hi vs. Nanjing Putian Telecommunications | Tianjin Hi vs. Shenzhen Hifuture Electric | Tianjin Hi vs. Shenyang Huitian Thermal | Tianjin Hi vs. Jiangsu Xinning Modern |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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