Correlation Between Keli Sensing and Shandong Longquan
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By analyzing existing cross correlation between Keli Sensing Technology and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Keli Sensing and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Shandong Longquan.
Diversification Opportunities for Keli Sensing and Shandong Longquan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keli and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Keli Sensing i.e., Keli Sensing and Shandong Longquan go up and down completely randomly.
Pair Corralation between Keli Sensing and Shandong Longquan
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.95 times more return on investment than Shandong Longquan. However, Keli Sensing is 1.95 times more volatile than Shandong Longquan Pipeline. It trades about 0.29 of its potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.0 per unit of risk. If you would invest 3,422 in Keli Sensing Technology on August 24, 2024 and sell it today you would earn a total of 1,233 from holding Keli Sensing Technology or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keli Sensing Technology vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Keli Sensing Technology |
| Shandong Longquan |
Keli Sensing and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Shandong Longquan
The main advantage of trading using opposite Keli Sensing and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Keli Sensing vs. Northking Information Technology | Keli Sensing vs. Dhc Software Co | Keli Sensing vs. Olympic Circuit Technology | Keli Sensing vs. Sinofibers Technology Co |
| Shandong Longquan vs. Shenzhen Noposion Agrochemicals | Shandong Longquan vs. Shandong Ruifeng Chemical | Shandong Longquan vs. Lier Chemical Co | Shandong Longquan vs. Jilin Chemical Fibre |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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