Correlation Between Keli Sensing and Yuan Longping
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By analyzing existing cross correlation between Keli Sensing Technology and Yuan Longping High tech, you can compare the effects of market volatilities on Keli Sensing and Yuan Longping 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 Keli Sensing with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Yuan Longping.
Diversification Opportunities for Keli Sensing and Yuan Longping
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keli and Yuan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and Keli Sensing 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 Keli Sensing Technology are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Keli Sensing i.e., Keli Sensing and Yuan Longping go up and down completely randomly.
Pair Corralation between Keli Sensing and Yuan Longping
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.93 times more return on investment than Yuan Longping. However, Keli Sensing is 1.93 times more volatile than Yuan Longping High tech. It trades about 0.07 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 3,360 in Keli Sensing Technology on September 4, 2024 and sell it today you would earn a total of 2,000 from holding Keli Sensing Technology or generate 59.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keli Sensing Technology vs. Yuan Longping High tech
Performance |
| Timeline |
| Keli Sensing Technology |
| Yuan Longping High |
Keli Sensing and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Yuan Longping
The main advantage of trading using opposite Keli Sensing and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Keli Sensing vs. Biwin Storage Technology | Keli Sensing vs. PetroChina Co Ltd | Keli Sensing vs. Industrial and Commercial | Keli Sensing vs. China Construction Bank |
| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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