Correlation Between Kangping Technology and Niutech Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangping Technology Co and Niutech Environment Technology, you can compare the effects of market volatilities on Kangping Technology and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Niutech Environment.
Diversification Opportunities for Kangping Technology and Niutech Environment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangping and Niutech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Kangping Technology i.e., Kangping Technology and Niutech Environment go up and down completely randomly.
Pair Corralation between Kangping Technology and Niutech Environment
Assuming the 90 days trading horizon Kangping Technology is expected to generate 2.19 times less return on investment than Niutech Environment. In addition to that, Kangping Technology is 1.09 times more volatile than Niutech Environment Technology. It trades about 0.04 of its total potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.1 per unit of volatility. If you would invest 1,297 in Niutech Environment Technology on November 30, 2024 and sell it today you would earn a total of 94.00 from holding Niutech Environment Technology or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Niutech Environment Technology
Performance |
| Timeline |
| Kangping Technology |
| Niutech Environment |
Kangping Technology and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Niutech Environment
The main advantage of trading using opposite Kangping Technology and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Kangping Technology vs. Porton Fine Chemicals | Kangping Technology vs. Northern United Publishing | Kangping Technology vs. Aba Chemicals Corp | Kangping Technology vs. Bus Online Co |
| Niutech Environment vs. Beijing Watertek Information | Niutech Environment vs. Anshan Senyuan Road | Niutech Environment vs. RoadMain T Co | Niutech Environment vs. Jinxiandai Information Industry |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |