Correlation Between Keeson Technology and Shengda Mining
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By analyzing existing cross correlation between Keeson Technology Corp and Shengda Mining Co, you can compare the effects of market volatilities on Keeson Technology and Shengda Mining 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 Keeson Technology with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeson Technology and Shengda Mining.
Diversification Opportunities for Keeson Technology and Shengda Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keeson and Shengda is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Keeson Technology Corp and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Keeson Technology 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 Keeson Technology Corp are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Keeson Technology i.e., Keeson Technology and Shengda Mining go up and down completely randomly.
Pair Corralation between Keeson Technology and Shengda Mining
Assuming the 90 days trading horizon Keeson Technology Corp is expected to generate 1.21 times more return on investment than Shengda Mining. However, Keeson Technology is 1.21 times more volatile than Shengda Mining Co. It trades about 0.19 of its potential returns per unit of risk. Shengda Mining Co is currently generating about -0.29 per unit of risk. If you would invest 944.00 in Keeson Technology Corp on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Keeson Technology Corp or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeson Technology Corp vs. Shengda Mining Co
Performance |
| Timeline |
| Keeson Technology Corp |
| Shengda Mining |
Keeson Technology and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeson Technology and Shengda Mining
The main advantage of trading using opposite Keeson Technology and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeson Technology position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Keeson Technology vs. Jiangxi Naipu Mining | Keeson Technology vs. Western Mining Co | Keeson Technology vs. Guangdong Jingyi Metal | Keeson Technology vs. Chengtun Mining Group |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co | Shengda Mining vs. Hoshine Silicon Ind |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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