Correlation Between Zhongtong Guomai and Kangyue Technology
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Kangyue Technology Co, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Kangyue Technology.
Diversification Opportunities for Zhongtong Guomai and Kangyue Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Kangyue is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Kangyue Technology go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Kangyue Technology
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 2.01 times more return on investment than Kangyue Technology. However, Zhongtong Guomai is 2.01 times more volatile than Kangyue Technology Co. It trades about -0.22 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.57 per unit of risk. If you would invest 1,166 in Zhongtong Guomai Communication on October 14, 2024 and sell it today you would lose (373.00) from holding Zhongtong Guomai Communication or give up 31.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Kangyue Technology Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Kangyue Technology |
Zhongtong Guomai and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Kangyue Technology
The main advantage of trading using opposite Zhongtong Guomai and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Zhejiang Publishing Media | Zhongtong Guomai vs. COL Digital Publishing | Zhongtong Guomai vs. Xinhua Winshare Publishing | Zhongtong Guomai vs. Guangzhou KingTeller Technology |
| Kangyue Technology vs. Omnijoi Media Corp | Kangyue Technology vs. Anhui Xinhua Media | Kangyue Technology vs. Jilin Jlu Communication | Kangyue Technology vs. State Grid InformationCommunication |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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