Correlation Between Jiujiang Shanshui and Kangping Technology
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Kangping Technology Co, you can compare the effects of market volatilities on Jiujiang Shanshui and Kangping Technology 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 Jiujiang Shanshui with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Kangping Technology.
Diversification Opportunities for Jiujiang Shanshui and Kangping Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Kangping is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Jiujiang Shanshui 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 Jiujiang Shanshui Technology are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Kangping Technology go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Kangping Technology
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.46 times less risky than Kangping Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,126 in Kangping Technology Co on September 21, 2024 and sell it today you would earn a total of 92.00 from holding Kangping Technology Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Kangping Technology Co
Performance |
| Timeline |
| Jiujiang Shanshui |
| Kangping Technology |
Jiujiang Shanshui and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Kangping Technology
The main advantage of trading using opposite Jiujiang Shanshui and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. China Construction Bank | Kangping Technology vs. Bank of China |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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