Correlation Between Zhongtong Guomai and Keli Sensing
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Keli Sensing Technology, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Keli Sensing.
Diversification Opportunities for Zhongtong Guomai and Keli Sensing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Keli is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 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 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 Zhongtong Guomai i.e., Zhongtong Guomai and Keli Sensing go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Keli Sensing
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 1.84 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Zhongtong Guomai Communication is 1.13 times less risky than Keli Sensing. It trades about 0.18 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,477 in Keli Sensing Technology on September 3, 2024 and sell it today you would earn a total of 2,627 from holding Keli Sensing Technology or generate 106.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Keli Sensing Technology
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Keli Sensing Technology |
Zhongtong Guomai and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Keli Sensing
The main advantage of trading using opposite Zhongtong Guomai and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Agricultural Bank of | Zhongtong Guomai vs. China Construction Bank | Zhongtong Guomai vs. Postal Savings Bank | Zhongtong Guomai vs. Bank of Communications |
| Keli Sensing vs. Zhongtong Guomai Communication | Keli Sensing vs. Anhui Fuhuang Steel | Keli Sensing vs. Jonjee Hi tech Industrial | Keli Sensing vs. Dongjiang Environmental 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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