Correlation Between Kangxin New and Ningbo Kangqiang
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By analyzing existing cross correlation between Kangxin New Materials and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Kangxin New and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Ningbo Kangqiang.
Diversification Opportunities for Kangxin New and Ningbo Kangqiang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Kangxin New i.e., Kangxin New and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Kangxin New and Ningbo Kangqiang
Assuming the 90 days trading horizon Kangxin New is expected to generate 1.31 times less return on investment than Ningbo Kangqiang. In addition to that, Kangxin New is 1.02 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.02 of its total potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.03 per unit of volatility. If you would invest 1,329 in Ningbo Kangqiang Electronics on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Ningbo Kangqiang Electronics or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Kangxin New Materials vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Kangxin New Materials |
| Ningbo Kangqiang Ele |
Kangxin New and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Ningbo Kangqiang
The main advantage of trading using opposite Kangxin New and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Rongsheng Petrochemical Co |
| Ningbo Kangqiang vs. Guangdong Brandmax Marketing | Ningbo Kangqiang vs. Gansu Huangtai Wine marketing | Ningbo Kangqiang vs. Sinocat Environmental Technology | Ningbo Kangqiang vs. Duzhe Publishing Media |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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