Correlation Between Metallurgical and Kangping Technology
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By analyzing existing cross correlation between Metallurgical of and Kangping Technology Co, you can compare the effects of market volatilities on Metallurgical and Kangping 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 Metallurgical with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Kangping Technology.
Diversification Opportunities for Metallurgical and Kangping Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Metallurgical and Kangping is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Metallurgical 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 Metallurgical of are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Metallurgical i.e., Metallurgical and Kangping Technology go up and down completely randomly.
Pair Corralation between Metallurgical and Kangping Technology
Assuming the 90 days trading horizon Metallurgical is expected to generate 2.96 times less return on investment than Kangping Technology. But when comparing it to its historical volatility, Metallurgical of is 1.59 times less risky than Kangping Technology. It trades about 0.02 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,712 in Kangping Technology Co on September 14, 2024 and sell it today you would earn a total of 702.00 from holding Kangping Technology Co or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metallurgical of vs. Kangping Technology Co
Performance |
| Timeline |
| Metallurgical |
| Kangping Technology |
Metallurgical and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metallurgical and Kangping Technology
The main advantage of trading using opposite Metallurgical and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical position performs unexpectedly, Kangping 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Metallurgical vs. Ming Yang Smart | Metallurgical vs. 159681 | Metallurgical vs. 159005 | Metallurgical vs. Loctek Ergonomic Technology |
| Kangping Technology vs. Guangdong Jinming Machinery | Kangping Technology vs. Shaanxi Meineng Clean | Kangping Technology vs. Gifore Agricultural Machinery | Kangping Technology vs. Eastroc Beverage 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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