Correlation Between Keli Sensing and Western Metal
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By analyzing existing cross correlation between Keli Sensing Technology and Western Metal Materials, you can compare the effects of market volatilities on Keli Sensing and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Western Metal.
Diversification Opportunities for Keli Sensing and Western Metal
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keli and Western is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Keli Sensing i.e., Keli Sensing and Western Metal go up and down completely randomly.
Pair Corralation between Keli Sensing and Western Metal
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.89 times more return on investment than Western Metal. However, Keli Sensing is 1.89 times more volatile than Western Metal Materials. It trades about 0.33 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.03 per unit of risk. If you would invest 3,661 in Keli Sensing Technology on September 4, 2024 and sell it today you would earn a total of 1,699 from holding Keli Sensing Technology or generate 46.41% 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. Western Metal Materials
Performance |
| Timeline |
| Keli Sensing Technology |
| Western Metal Materials |
Keli Sensing and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Western Metal
The main advantage of trading using opposite Keli Sensing and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing position performs unexpectedly, Western Metal 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 Metal will offset losses from the drop in Western Metal'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 |
| Western Metal vs. Techshine Electronics Co | Western Metal vs. Leaguer Shenzhen MicroElectronics | Western Metal vs. Suzhou Weizhixiang Food | Western Metal vs. Guilin Seamild Foods |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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