Correlation Between Hubei Geoway and Kangyue Technology
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By analyzing existing cross correlation between Hubei Geoway Investment and Kangyue Technology Co, you can compare the effects of market volatilities on Hubei Geoway and Kangyue Technology 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 Hubei Geoway with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Kangyue Technology.
Diversification Opportunities for Hubei Geoway and Kangyue Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Kangyue is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Hubei Geoway 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 Hubei Geoway Investment are associated (or correlated) with Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Hubei Geoway i.e., Hubei Geoway and Kangyue Technology go up and down completely randomly.
Pair Corralation between Hubei Geoway and Kangyue Technology
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.75 times less risky than Kangyue Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 410.00 in Kangyue Technology Co on December 4, 2024 and sell it today you would earn a total of 148.00 from holding Kangyue Technology Co or generate 36.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Kangyue Technology Co
Performance |
| Timeline |
| Hubei Geoway Investment |
| Kangyue Technology |
Hubei Geoway and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Kangyue Technology
The main advantage of trading using opposite Hubei Geoway and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Hubei Geoway vs. Fiberhome Telecommunication Technologies | Hubei Geoway vs. Guangxi Wuzhou Communications | Hubei Geoway vs. Queclink Wireless Solutions | Hubei Geoway vs. Gem Year Industrial Co |
| Kangyue Technology vs. JCHX Mining Management | Kangyue Technology vs. Hygon Information Technology | Kangyue Technology vs. Tianjin Silvery Dragon | Kangyue Technology vs. Yonghui Superstores 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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