Correlation Between Industrial and Kangyue Technology
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By analyzing existing cross correlation between Industrial and Commercial and Kangyue Technology Co, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Kangyue Technology.
Diversification Opportunities for Industrial and Kangyue Technology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Kangyue is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Kangyue Technology go up and down completely randomly.
Pair Corralation between Industrial and Kangyue Technology
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.14 times more return on investment than Kangyue Technology. However, Industrial and Commercial is 7.32 times less risky than Kangyue Technology. It trades about 0.32 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.04 per unit of risk. If you would invest 604.00 in Industrial and Commercial on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Industrial and Commercial or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Kangyue Technology Co
Performance |
| Timeline |
| Industrial and Commercial |
| Kangyue Technology |
Industrial and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Kangyue Technology
The main advantage of trading using opposite Industrial and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| Kangyue Technology vs. China Asset Management | Kangyue Technology vs. Tongyu Communication | Kangyue Technology vs. Chengdu Spaceon Electronics | Kangyue Technology vs. JCHX Mining Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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