Correlation Between Kangping Technology and Shanxi Lanhua
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By analyzing existing cross correlation between Kangping Technology Co and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Kangping Technology and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Shanxi Lanhua.
Diversification Opportunities for Kangping Technology and Shanxi Lanhua
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kangping and Shanxi is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Kangping Technology i.e., Kangping Technology and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Kangping Technology and Shanxi Lanhua
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.59 times more return on investment than Shanxi Lanhua. However, Kangping Technology is 1.59 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.02 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.0 per unit of risk. If you would invest 2,126 in Kangping Technology Co on September 21, 2024 and sell it today you would earn a total of 92.00 from holding Kangping Technology Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Kangping Technology |
| Shanxi Lanhua Sci |
Kangping Technology and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Shanxi Lanhua
The main advantage of trading using opposite Kangping Technology and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. China Construction Bank | Kangping Technology vs. Bank of China |
| Shanxi Lanhua vs. Tongyu Communication | Shanxi Lanhua vs. Guangdong Shenglu Telecommunication | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Zhongshan Public Utilities |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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