Correlation Between Kangping Technology and Shuhua Sports
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By analyzing existing cross correlation between Kangping Technology Co and Shuhua Sports Co, you can compare the effects of market volatilities on Kangping Technology and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Shuhua Sports.
Diversification Opportunities for Kangping Technology and Shuhua Sports
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangping and Shuhua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Kangping Technology i.e., Kangping Technology and Shuhua Sports go up and down completely randomly.
Pair Corralation between Kangping Technology and Shuhua Sports
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.15 times more return on investment than Shuhua Sports. However, Kangping Technology is 1.15 times more volatile than Shuhua Sports Co. It trades about 0.03 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.0 per unit of risk. If you would invest 1,831 in Kangping Technology Co on August 29, 2024 and sell it today you would earn a total of 517.00 from holding Kangping Technology Co or generate 28.24% 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. Shuhua Sports Co
Performance |
| Timeline |
| Kangping Technology |
| Shuhua Sports |
Kangping Technology and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Shuhua Sports
The main advantage of trading using opposite Kangping Technology and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Kangping Technology vs. Shanxi Lanhua Sci Tech | Kangping Technology vs. Zoje Resources Investment | Kangping Technology vs. Jointo Energy Investment | Kangping Technology vs. Hunan Investment Group |
| Shuhua Sports vs. Agricultural Bank of | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. Bank of China | Shuhua Sports vs. China Construction Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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