Correlation Between Keeson Technology and Gem Year
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By analyzing existing cross correlation between Keeson Technology Corp and Gem Year Industrial Co, you can compare the effects of market volatilities on Keeson Technology and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeson Technology and Gem Year.
Diversification Opportunities for Keeson Technology and Gem Year
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keeson and Gem is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Keeson Technology Corp and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Keeson Technology i.e., Keeson Technology and Gem Year go up and down completely randomly.
Pair Corralation between Keeson Technology and Gem Year
Assuming the 90 days trading horizon Keeson Technology is expected to generate 3.81 times less return on investment than Gem Year. But when comparing it to its historical volatility, Keeson Technology Corp is 1.07 times less risky than Gem Year. It trades about 0.01 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Gem Year Industrial Co on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Gem Year Industrial Co or generate 21.98% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Keeson Technology Corp |
| Gem Year Industrial |
Keeson Technology and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeson Technology and Gem Year
The main advantage of trading using opposite Keeson Technology and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeson Technology position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Keeson Technology vs. Youyou Foods Co | Keeson Technology vs. HaiXin Foods Co | Keeson Technology vs. Nexchip Semiconductor Corp | Keeson Technology vs. Anhui Gujing Distillery |
| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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