Correlation Between Kangxin New and China Resources
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By analyzing existing cross correlation between Kangxin New Materials and China Resources Boya, you can compare the effects of market volatilities on Kangxin New and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and China Resources.
Diversification Opportunities for Kangxin New and China Resources
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kangxin and China is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Kangxin New i.e., Kangxin New and China Resources go up and down completely randomly.
Pair Corralation between Kangxin New and China Resources
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the China Resources. In addition to that, Kangxin New is 2.96 times more volatile than China Resources Boya. It trades about -0.53 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.19 per unit of volatility. If you would invest 3,096 in China Resources Boya on October 9, 2024 and sell it today you would lose (126.00) from holding China Resources Boya or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. China Resources Boya
Performance |
| Timeline |
| Kangxin New Materials |
| China Resources Boya |
Kangxin New and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and China Resources
The main advantage of trading using opposite Kangxin New and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
| China Resources vs. Xingguang Agricultural Mach | China Resources vs. Qingdao Foods Co | China Resources vs. Long Yuan Construction | China Resources vs. Jinzai Food 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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