Correlation Between Kangping Technology and China Railway
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By analyzing existing cross correlation between Kangping Technology Co and China Railway Construction, you can compare the effects of market volatilities on Kangping Technology and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and China Railway.
Diversification Opportunities for Kangping Technology and China Railway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangping and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Kangping Technology i.e., Kangping Technology and China Railway go up and down completely randomly.
Pair Corralation between Kangping Technology and China Railway
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.54 times more return on investment than China Railway. However, Kangping Technology is 1.54 times more volatile than China Railway Construction. It trades about 0.03 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of risk. If you would invest 1,762 in Kangping Technology Co on September 28, 2024 and sell it today you would earn a total of 411.00 from holding Kangping Technology Co or generate 23.33% 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. China Railway Construction
Performance |
| Timeline |
| Kangping Technology |
| China Railway Constr |
Kangping Technology and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and China Railway
The main advantage of trading using opposite Kangping Technology and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Kangping Technology vs. Kweichow Moutai Co | Kangping Technology vs. Contemporary Amperex Technology | Kangping Technology vs. G bits Network Technology | Kangping Technology vs. BYD Co Ltd |
| China Railway vs. Kangping Technology Co | China Railway vs. Vanfund Urban Investment | China Railway vs. Tieling Newcity Investment | China Railway vs. Postal Savings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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