Correlation Between HMTNew Technical and Kangxin New
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By analyzing existing cross correlation between HMTNew Technical and Kangxin New Materials, you can compare the effects of market volatilities on HMTNew Technical and Kangxin New 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 HMTNew Technical with a short position of Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMTNew Technical and Kangxin New.
Diversification Opportunities for HMTNew Technical and Kangxin New
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HMTNew and Kangxin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding HMTNew Technical and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials and HMTNew Technical 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 HMTNew Technical are associated (or correlated) with Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of HMTNew Technical i.e., HMTNew Technical and Kangxin New go up and down completely randomly.
Pair Corralation between HMTNew Technical and Kangxin New
Assuming the 90 days trading horizon HMTNew Technical is expected to under-perform the Kangxin New. In addition to that, HMTNew Technical is 1.01 times more volatile than Kangxin New Materials. It trades about -0.03 of its total potential returns per unit of risk. Kangxin New Materials is currently generating about 0.17 per unit of volatility. If you would invest 235.00 in Kangxin New Materials on September 12, 2024 and sell it today you would earn a total of 34.00 from holding Kangxin New Materials or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
HMTNew Technical vs. Kangxin New Materials
Performance |
| Timeline |
| HMTNew Technical |
| Kangxin New Materials |
HMTNew Technical and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMTNew Technical and Kangxin New
The main advantage of trading using opposite HMTNew Technical and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMTNew Technical position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Rongsheng Petrochemical Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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