Correlation Between Shanghai Rongtai and Kangping Technology
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By analyzing existing cross correlation between Shanghai Rongtai Health and Kangping Technology Co, you can compare the effects of market volatilities on Shanghai Rongtai 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 Shanghai Rongtai with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Kangping Technology.
Diversification Opportunities for Shanghai Rongtai and Kangping Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Kangping is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Shanghai Rongtai 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 Shanghai Rongtai Health 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 Shanghai Rongtai i.e., Shanghai Rongtai and Kangping Technology go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Kangping Technology
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Rongtai Health is 1.23 times less risky than Kangping Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,839 in Kangping Technology Co on October 16, 2024 and sell it today you would earn a total of 148.00 from holding Kangping Technology Co or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Kangping Technology Co
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Kangping Technology |
Shanghai Rongtai and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Kangping Technology
The main advantage of trading using opposite Shanghai Rongtai and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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.| Shanghai Rongtai vs. Hubei Geoway Investment | Shanghai Rongtai vs. Henan Shuanghui Investment | Shanghai Rongtai vs. Zhongrun Resources Investment | Shanghai Rongtai vs. Puya Semiconductor Shanghai |
| Kangping Technology vs. Shanghai Rongtai Health | Kangping Technology vs. Healthcare Co | Kangping Technology vs. Mango Excellent Media | Kangping Technology vs. Youngy Health 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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