Correlation Between Kangping Technology and Ningbo Jintian
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By analyzing existing cross correlation between Kangping Technology Co and Ningbo Jintian Copper, you can compare the effects of market volatilities on Kangping Technology and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Ningbo Jintian.
Diversification Opportunities for Kangping Technology and Ningbo Jintian
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Kangping Technology i.e., Kangping Technology and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Kangping Technology and Ningbo Jintian
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.25 times more return on investment than Ningbo Jintian. However, Kangping Technology is 1.25 times more volatile than Ningbo Jintian Copper. It trades about 0.28 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.05 per unit of risk. If you would invest 2,149 in Kangping Technology Co on September 3, 2024 and sell it today you would earn a total of 231.00 from holding Kangping Technology Co or generate 10.75% 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. Ningbo Jintian Copper
Performance |
| Timeline |
| Kangping Technology |
| Ningbo Jintian Copper |
Kangping Technology and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Ningbo Jintian
The main advantage of trading using opposite Kangping Technology and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian'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 |
| Ningbo Jintian vs. Jinhe Biotechnology Co | Ningbo Jintian vs. Kangping Technology Co | Ningbo Jintian vs. HUAQIN TECHNOLOGY LTD | Ningbo Jintian vs. Guangdong Liantai Environmental |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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