Correlation Between Kangping Technology and Beijing Roborock
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By analyzing existing cross correlation between Kangping Technology Co and Beijing Roborock Technology, you can compare the effects of market volatilities on Kangping Technology and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Beijing Roborock.
Diversification Opportunities for Kangping Technology and Beijing Roborock
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kangping and Beijing is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Kangping Technology i.e., Kangping Technology and Beijing Roborock go up and down completely randomly.
Pair Corralation between Kangping Technology and Beijing Roborock
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 3.13 times more return on investment than Beijing Roborock. However, Kangping Technology is 3.13 times more volatile than Beijing Roborock Technology. It trades about 0.14 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.13 per unit of risk. If you would invest 2,230 in Kangping Technology Co on December 31, 2024 and sell it today you would earn a total of 351.00 from holding Kangping Technology Co or generate 15.74% 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. Beijing Roborock Technology
Performance |
| Timeline |
| Kangping Technology |
| Beijing Roborock Tec |
Kangping Technology and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Beijing Roborock
The main advantage of trading using opposite Kangping Technology and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Kangping Technology vs. Luyin Investment Group | Kangping Technology vs. Huawen Media Investment | Kangping Technology vs. Cultural Investment Holdings | Kangping Technology vs. Metro Investment Development |
| Beijing Roborock vs. China Life Insurance | Beijing Roborock vs. CIMC Vehicles Co | Beijing Roborock vs. Henan Provincial Communications | Beijing Roborock vs. Ping An Insurance |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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