Correlation Between Kangxin New and Guangzhou Ruoyuchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangxin New Materials and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Kangxin New and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Guangzhou Ruoyuchen.
Diversification Opportunities for Kangxin New and Guangzhou Ruoyuchen
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kangxin and Guangzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Kangxin New i.e., Kangxin New and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Kangxin New and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Guangzhou Ruoyuchen. But the stock apears to be less risky and, when comparing its historical volatility, Kangxin New Materials is 1.97 times less risky than Guangzhou Ruoyuchen. The stock trades about -0.43 of its potential returns per unit of risk. The Guangzhou Ruoyuchen Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,510 in Guangzhou Ruoyuchen Information on October 18, 2024 and sell it today you would earn a total of 150.00 from holding Guangzhou Ruoyuchen Information or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Kangxin New Materials |
| Guangzhou Ruoyuchen |
Kangxin New and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Guangzhou Ruoyuchen
The main advantage of trading using opposite Kangxin New and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Kangxin New vs. Fujian Wanchen Biotechnology | Kangxin New vs. State Grid InformationCommunication | Kangxin New vs. Anhui Jianghuai Automobile | Kangxin New vs. Jiangsu GDK Biotechnology |
| Guangzhou Ruoyuchen vs. Fibocom Wireless | Guangzhou Ruoyuchen vs. Quectel Wireless Solutions | Guangzhou Ruoyuchen vs. Kangxin New Materials | Guangzhou Ruoyuchen vs. Anhui Jianghuai Automobile |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |