Correlation Between China Publishing and Kangping Technology
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By analyzing existing cross correlation between China Publishing Media and Kangping Technology Co, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Kangping Technology.
Diversification Opportunities for China Publishing and Kangping Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Kangping is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and China Publishing 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 Publishing Media 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 China Publishing i.e., China Publishing and Kangping Technology go up and down completely randomly.
Pair Corralation between China Publishing and Kangping Technology
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.17 times more return on investment than Kangping Technology. However, China Publishing is 1.17 times more volatile than Kangping Technology Co. It trades about 0.04 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.02 per unit of risk. If you would invest 516.00 in China Publishing Media on November 1, 2024 and sell it today you would earn a total of 180.00 from holding China Publishing Media or generate 34.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Kangping Technology Co
Performance |
| Timeline |
| China Publishing Media |
| Kangping Technology |
China Publishing and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Kangping Technology
The main advantage of trading using opposite China Publishing and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.| China Publishing vs. Linewell Software Co | China Publishing vs. Xinhua Winshare Publishing | China Publishing vs. Dhc Software Co | China Publishing vs. CGN Nuclear Technology |
| Kangping Technology vs. Sharetronic Data Technology | Kangping Technology vs. China Publishing Media | Kangping Technology vs. Holitech Technology Co | Kangping Technology vs. Sinocelltech 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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