Correlation Between Changchun Engley and Keli Sensing
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By analyzing existing cross correlation between Changchun Engley Automobile and Keli Sensing Technology, you can compare the effects of market volatilities on Changchun Engley and Keli Sensing 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 Changchun Engley with a short position of Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Keli Sensing.
Diversification Opportunities for Changchun Engley and Keli Sensing
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and Keli is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology and Changchun Engley 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 Changchun Engley Automobile are associated (or correlated) with Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Changchun Engley i.e., Changchun Engley and Keli Sensing go up and down completely randomly.
Pair Corralation between Changchun Engley and Keli Sensing
Assuming the 90 days trading horizon Changchun Engley is expected to generate 1.6 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Changchun Engley Automobile is 2.53 times less risky than Keli Sensing. It trades about 0.25 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,777 in Keli Sensing Technology on November 29, 2024 and sell it today you would earn a total of 760.00 from holding Keli Sensing Technology or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Keli Sensing Technology
Performance |
| Timeline |
| Changchun Engley Aut |
| Keli Sensing Technology |
Changchun Engley and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Keli Sensing
The main advantage of trading using opposite Changchun Engley and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Changchun Engley vs. Postal Savings Bank | Changchun Engley vs. JCHX Mining Management | Changchun Engley vs. Soochow Suzhou Industrial | Changchun Engley vs. Western Metal Materials |
| Keli Sensing vs. Jilin Jlu Communication | Keli Sensing vs. Fujian Anjoy Foods | Keli Sensing vs. Runjian Communication Co | Keli Sensing vs. Queclink Wireless Solutions |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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