Correlation Between Kangxin New and Super Dragon
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By analyzing existing cross correlation between Kangxin New Materials and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Kangxin New and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Super Dragon.
Diversification Opportunities for Kangxin New and Super Dragon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Super is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Kangxin New i.e., Kangxin New and Super Dragon go up and down completely randomly.
Pair Corralation between Kangxin New and Super Dragon
Assuming the 90 days trading horizon Kangxin New is expected to generate 9.23 times less return on investment than Super Dragon. But when comparing it to its historical volatility, Kangxin New Materials is 1.26 times less risky than Super Dragon. It trades about 0.0 of its potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,493 in Super Dragon Engineering Plastics on September 4, 2024 and sell it today you would lose (496.00) from holding Super Dragon Engineering Plastics or give up 11.04% 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. Super Dragon Engineering Plast
Performance |
| Timeline |
| Kangxin New Materials |
| Super Dragon Enginee |
Kangxin New and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Super Dragon
The main advantage of trading using opposite Kangxin New and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Kangxin New vs. Inly Media Co | Kangxin New vs. Tsingtao Brewery Co | Kangxin New vs. HMTNew Technical | Kangxin New vs. Beijing Bashi Media |
| Super Dragon vs. Suzhou Douson Drilling | Super Dragon vs. Tianjin Pengling Rubber | Super Dragon vs. CSSC Offshore Marine | Super Dragon vs. Suzhou Xingye Material |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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