Correlation Between Keeson Technology and Guangdong Tianhe
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By analyzing existing cross correlation between Keeson Technology Corp and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Keeson Technology and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeson Technology and Guangdong Tianhe.
Diversification Opportunities for Keeson Technology and Guangdong Tianhe
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keeson and Guangdong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Keeson Technology Corp and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Keeson Technology i.e., Keeson Technology and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Keeson Technology and Guangdong Tianhe
Assuming the 90 days trading horizon Keeson Technology Corp is expected to generate 1.03 times more return on investment than Guangdong Tianhe. However, Keeson Technology is 1.03 times more volatile than Guangdong Tianhe Agricultural. It trades about 0.08 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about 0.04 per unit of risk. If you would invest 988.00 in Keeson Technology Corp on September 26, 2024 and sell it today you would earn a total of 247.00 from holding Keeson Technology Corp or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keeson Technology Corp vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Keeson Technology Corp |
| Guangdong Tianhe Agr |
Keeson Technology and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeson Technology and Guangdong Tianhe
The main advantage of trading using opposite Keeson Technology and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeson Technology position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Keeson Technology vs. Agricultural Bank of | Keeson Technology vs. Industrial and Commercial | Keeson Technology vs. Bank of China | Keeson Technology vs. China Construction Bank |
| Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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