Correlation Between Kailong High and HeBei Jinniu
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By analyzing existing cross correlation between Kailong High Technology and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Kailong High and HeBei Jinniu 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 Kailong High with a short position of HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kailong High and HeBei Jinniu.
Diversification Opportunities for Kailong High and HeBei Jinniu
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kailong and HeBei is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kailong High Technology and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical and Kailong High 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 Kailong High Technology are associated (or correlated) with HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Kailong High i.e., Kailong High and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Kailong High and HeBei Jinniu
Assuming the 90 days trading horizon Kailong High Technology is expected to under-perform the HeBei Jinniu. In addition to that, Kailong High is 1.18 times more volatile than HeBei Jinniu Chemical. It trades about -0.1 of its total potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.11 per unit of volatility. If you would invest 528.00 in HeBei Jinniu Chemical on October 19, 2024 and sell it today you would earn a total of 38.00 from holding HeBei Jinniu Chemical or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kailong High Technology vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Kailong High Technology |
| HeBei Jinniu Chemical |
Kailong High and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kailong High and HeBei Jinniu
The main advantage of trading using opposite Kailong High and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kailong High position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Kailong High vs. HeBei Jinniu Chemical | Kailong High vs. Shenyang Chemical Industry | Kailong High vs. GRINM Semiconductor Materials | Kailong High vs. China World Trade |
| HeBei Jinniu vs. China Everbright Bank | HeBei Jinniu vs. Hubei Xingfa Chemicals | HeBei Jinniu vs. Unisplendour Corp | HeBei Jinniu vs. Xiamen Bank Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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