Correlation Between Chahua Modern and Kangping Technology
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By analyzing existing cross correlation between Chahua Modern Housewares and Kangping Technology Co, you can compare the effects of market volatilities on Chahua Modern and Kangping Technology 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 Chahua Modern with a short position of Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Kangping Technology.
Diversification Opportunities for Chahua Modern and Kangping Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chahua and Kangping is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Chahua Modern i.e., Chahua Modern and Kangping Technology go up and down completely randomly.
Pair Corralation between Chahua Modern and Kangping Technology
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.19 times more return on investment than Kangping Technology. However, Chahua Modern is 1.19 times more volatile than Kangping Technology Co. It trades about 0.37 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.19 per unit of risk. If you would invest 1,229 in Chahua Modern Housewares on August 25, 2024 and sell it today you would earn a total of 1,139 from holding Chahua Modern Housewares or generate 92.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Kangping Technology Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Kangping Technology |
Chahua Modern and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Kangping Technology
The main advantage of trading using opposite Chahua Modern and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Chahua Modern vs. Xiangyang Automobile Bearing | Chahua Modern vs. Ligao Foods CoLtd | Chahua Modern vs. Xiamen Jihong Package | Chahua Modern vs. Yankershop Food Co |
| Kangping Technology vs. Kweichow Moutai Co | Kangping Technology vs. Shenzhen Mindray Bio Medical | Kangping Technology vs. Jiangsu Pacific Quartz | Kangping Technology vs. G bits Network 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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