Correlation Between Kangping Technology and Anhui Huaheng
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By analyzing existing cross correlation between Kangping Technology Co and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Kangping Technology and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Anhui Huaheng.
Diversification Opportunities for Kangping Technology and Anhui Huaheng
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangping and Anhui is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Kangping Technology i.e., Kangping Technology and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Kangping Technology and Anhui Huaheng
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.21 times more return on investment than Anhui Huaheng. However, Kangping Technology is 1.21 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.31 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.27 per unit of risk. If you would invest 1,963 in Kangping Technology Co on November 4, 2024 and sell it today you would earn a total of 222.00 from holding Kangping Technology Co or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Kangping Technology |
| Anhui Huaheng Biotec |
Kangping Technology and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Anhui Huaheng
The main advantage of trading using opposite Kangping Technology and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Kangping Technology vs. Dongfeng Automobile Co | Kangping Technology vs. Sinomach Automobile Co | Kangping Technology vs. Sanxiang Advanced Materials | Kangping Technology vs. Xiangyang Automobile Bearing |
| Anhui Huaheng vs. Shanghai Action Education | Anhui Huaheng vs. Sichuan Fulin Transportation | Anhui Huaheng vs. Xinjiang Beixin RoadBridge | Anhui Huaheng vs. Dazhong Transportation Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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