Correlation Between Keli Sensing and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Keli Sensing Technology and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Keli Sensing and HUAQIN 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 Keli Sensing with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and HUAQIN TECHNOLOGY.
Diversification Opportunities for Keli Sensing and HUAQIN TECHNOLOGY
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keli and HUAQIN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing Technology and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Keli Sensing i.e., Keli Sensing and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Keli Sensing and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.37 times more return on investment than HUAQIN TECHNOLOGY. However, Keli Sensing is 1.37 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about 0.08 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.04 per unit of risk. If you would invest 1,659 in Keli Sensing Technology on September 3, 2024 and sell it today you would earn a total of 3,445 from holding Keli Sensing Technology or generate 207.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 66.88% |
| Values | Daily Returns |
Keli Sensing Technology vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Keli Sensing Technology |
| HUAQIN TECHNOLOGY LTD |
Keli Sensing and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Keli Sensing and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing position performs unexpectedly, HUAQIN 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Keli Sensing vs. Zhongtong Guomai Communication | Keli Sensing vs. Anhui Fuhuang Steel | Keli Sensing vs. Jonjee Hi tech Industrial | Keli Sensing vs. Dongjiang Environmental Co |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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