Correlation Between Keeson Technology and Ningbo Fangzheng
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By analyzing existing cross correlation between Keeson Technology Corp and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Keeson Technology and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeson Technology and Ningbo Fangzheng.
Diversification Opportunities for Keeson Technology and Ningbo Fangzheng
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Keeson and Ningbo is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Keeson Technology Corp and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Keeson Technology i.e., Keeson Technology and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Keeson Technology and Ningbo Fangzheng
Assuming the 90 days trading horizon Keeson Technology Corp is expected to under-perform the Ningbo Fangzheng. In addition to that, Keeson Technology is 1.32 times more volatile than Ningbo Fangzheng Automobile. It trades about -0.19 of its total potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.02 per unit of volatility. If you would invest 1,519 in Ningbo Fangzheng Automobile on October 30, 2024 and sell it today you would lose (24.00) from holding Ningbo Fangzheng Automobile or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Keeson Technology Corp vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Keeson Technology Corp |
| Ningbo Fangzheng Aut |
Keeson Technology and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeson Technology and Ningbo Fangzheng
The main advantage of trading using opposite Keeson Technology and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeson Technology position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Keeson Technology vs. Cloud Live Technology | Keeson Technology vs. Nanjing Putian Telecommunications | Keeson Technology vs. Shenzhen Coship Electronics | Keeson Technology vs. Shenzhen Hifuture Electric |
| Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Jiangsu Pacific Quartz | Ningbo Fangzheng vs. Shenzhen Transsion Holdings | Ningbo Fangzheng vs. Beijing Roborock Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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