Correlation Between China State and Keli Sensing
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By analyzing existing cross correlation between China State Construction and Keli Sensing Technology, you can compare the effects of market volatilities on China State 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 China State with a short position of Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Keli Sensing.
Diversification Opportunities for China State and Keli Sensing
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Keli is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Keli Sensing go up and down completely randomly.
Pair Corralation between China State and Keli Sensing
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Keli Sensing. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 3.91 times less risky than Keli Sensing. The stock trades about -0.18 of its potential returns per unit of risk. The Keli Sensing Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,621 in Keli Sensing Technology on November 28, 2024 and sell it today you would earn a total of 709.00 from holding Keli Sensing Technology or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Keli Sensing Technology
Performance |
| Timeline |
| China State Construction |
| Keli Sensing Technology |
China State and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Keli Sensing
The main advantage of trading using opposite China State and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Guangzhou Dongfang Hotel | China State vs. Henan Shuanghui Investment | China State vs. Ningbo Ligong Online | China State vs. Beijing Mainstreets Investment |
| Keli Sensing vs. Shanghai Rightongene Biotechnology | Keli Sensing vs. Anhui Huaheng Biotechnology | Keli Sensing vs. Xiwang Foodstuffs Co | Keli Sensing vs. Huatian Hotel 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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