Correlation Between Kangxin New and Cangzhou Mingzhu
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By analyzing existing cross correlation between Kangxin New Materials and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Kangxin New and Cangzhou Mingzhu 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 Kangxin New with a short position of Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Cangzhou Mingzhu.
Diversification Opportunities for Kangxin New and Cangzhou Mingzhu
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Cangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic and Kangxin New 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 Kangxin New Materials are associated (or correlated) with Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Kangxin New i.e., Kangxin New and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Kangxin New and Cangzhou Mingzhu
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Cangzhou Mingzhu. In addition to that, Kangxin New is 1.38 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.31 of its total potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.12 per unit of volatility. If you would invest 363.00 in Cangzhou Mingzhu Plastic on October 22, 2024 and sell it today you would lose (16.00) from holding Cangzhou Mingzhu Plastic or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Kangxin New Materials |
| Cangzhou Mingzhu Plastic |
Kangxin New and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Cangzhou Mingzhu
The main advantage of trading using opposite Kangxin New and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Kangxin New vs. UE Furniture Co | Kangxin New vs. Qumei Furniture Group | Kangxin New vs. Rising Nonferrous Metals | Kangxin New vs. Luolai Home Textile |
| Cangzhou Mingzhu vs. Beijing Baolande Software | Cangzhou Mingzhu vs. Fujian Boss Software | Cangzhou Mingzhu vs. Zoy Home Furnishing | Cangzhou Mingzhu vs. UE Furniture 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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