Correlation Between Keli Sensing and Broadex Technologies
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By analyzing existing cross correlation between Keli Sensing Technology and Broadex Technologies Co, you can compare the effects of market volatilities on Keli Sensing and Broadex Technologies 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 Broadex Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Broadex Technologies.
Diversification Opportunities for Keli Sensing and Broadex Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keli and Broadex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and Broadex Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadex Technologies 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 Broadex Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadex Technologies has no effect on the direction of Keli Sensing i.e., Keli Sensing and Broadex Technologies go up and down completely randomly.
Pair Corralation between Keli Sensing and Broadex Technologies
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.02 times more return on investment than Broadex Technologies. However, Keli Sensing is 1.02 times more volatile than Broadex Technologies Co. It trades about 0.26 of its potential returns per unit of risk. Broadex Technologies Co is currently generating about 0.11 per unit of risk. If you would invest 2,409 in Keli Sensing Technology on August 30, 2024 and sell it today you would earn a total of 2,231 from holding Keli Sensing Technology or generate 92.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keli Sensing Technology vs. Broadex Technologies Co
Performance |
| Timeline |
| Keli Sensing Technology |
| Broadex Technologies |
Keli Sensing and Broadex Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Broadex Technologies
The main advantage of trading using opposite Keli Sensing and Broadex Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing position performs unexpectedly, Broadex Technologies 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 Broadex Technologies will offset losses from the drop in Broadex Technologies' long position.| Keli Sensing vs. Songz Automobile Air | Keli Sensing vs. Guangzhou Ruoyuchen Information | Keli Sensing vs. Allwin Telecommunication Co | Keli Sensing vs. Changchun Engley Automobile |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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