Correlation Between China Merchants and Keeson Technology
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By analyzing existing cross correlation between China Merchants Bank and Keeson Technology Corp, you can compare the effects of market volatilities on China Merchants and Keeson 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 China Merchants with a short position of Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Keeson Technology.
Diversification Opportunities for China Merchants and Keeson Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Keeson is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp and China Merchants 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 China Merchants Bank are associated (or correlated) with Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of China Merchants i.e., China Merchants and Keeson Technology go up and down completely randomly.
Pair Corralation between China Merchants and Keeson Technology
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.67 times more return on investment than Keeson Technology. However, China Merchants Bank is 1.5 times less risky than Keeson Technology. It trades about 0.04 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 3,399 in China Merchants Bank on September 3, 2024 and sell it today you would earn a total of 235.00 from holding China Merchants Bank or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Keeson Technology Corp
Performance |
| Timeline |
| China Merchants Bank |
| Keeson Technology Corp |
China Merchants and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Keeson Technology
The main advantage of trading using opposite China Merchants and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Keeson 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| China Merchants vs. Hainan Mining Co | China Merchants vs. Shengda Mining Co | China Merchants vs. Jonjee Hi tech Industrial | China Merchants vs. Tianjin Hi Tech Development |
| Keeson Technology vs. Jiangxi Naipu Mining | Keeson Technology vs. Western Mining Co | Keeson Technology vs. Guangdong Jingyi Metal | Keeson Technology vs. Chengtun Mining 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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