Correlation Between Keeson Technology and Western Mining
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By analyzing existing cross correlation between Keeson Technology Corp and Western Mining Co, you can compare the effects of market volatilities on Keeson Technology and Western 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeson Technology and Western Mining.
Diversification Opportunities for Keeson Technology and Western Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keeson and Western is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Keeson Technology Corp and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Keeson Technology i.e., Keeson Technology and Western Mining go up and down completely randomly.
Pair Corralation between Keeson Technology and Western Mining
Assuming the 90 days trading horizon Keeson Technology Corp is expected to generate 1.22 times more return on investment than Western Mining. However, Keeson Technology is 1.22 times more volatile than Western Mining Co. It trades about 0.19 of its potential returns per unit of risk. Western Mining Co is currently generating about -0.11 per unit of risk. If you would invest 935.00 in Keeson Technology Corp on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Keeson Technology Corp or generate 9.52% 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. Western Mining Co
Performance |
| Timeline |
| Keeson Technology Corp |
| Western Mining |
Keeson Technology and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeson Technology and Western Mining
The main advantage of trading using opposite Keeson Technology and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeson Technology position performs unexpectedly, Western 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 Western Mining will offset losses from the drop in Western Mining'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 |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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