Correlation Between Hubei Huaqiang and Keli Sensing
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By analyzing existing cross correlation between Hubei Huaqiang High Tech and Keli Sensing Technology, you can compare the effects of market volatilities on Hubei Huaqiang and Keli Sensing 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 Hubei Huaqiang with a short position of Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Huaqiang and Keli Sensing.
Diversification Opportunities for Hubei Huaqiang and Keli Sensing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Keli is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Huaqiang High Tech and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology and Hubei Huaqiang 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 Hubei Huaqiang High Tech are associated (or correlated) with Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Hubei Huaqiang i.e., Hubei Huaqiang and Keli Sensing go up and down completely randomly.
Pair Corralation between Hubei Huaqiang and Keli Sensing
Assuming the 90 days trading horizon Hubei Huaqiang is expected to generate 19.96 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Hubei Huaqiang High Tech is 2.56 times less risky than Keli Sensing. It trades about 0.04 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3,351 in Keli Sensing Technology on September 1, 2024 and sell it today you would earn a total of 1,753 from holding Keli Sensing Technology or generate 52.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Huaqiang High Tech vs. Keli Sensing Technology
Performance |
| Timeline |
| Hubei Huaqiang High |
| Keli Sensing Technology |
Hubei Huaqiang and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Huaqiang and Keli Sensing
The main advantage of trading using opposite Hubei Huaqiang and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Huaqiang position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Hubei Huaqiang vs. Nanjing Putian Telecommunications | Hubei Huaqiang vs. Shenzhen Hifuture Electric | Hubei Huaqiang vs. Tianjin Realty Development | Hubei Huaqiang vs. Shenyang Huitian Thermal |
| Keli Sensing vs. Cultural Investment Holdings | Keli Sensing vs. Gome Telecom Equipment | Keli Sensing vs. Bus Online Co | Keli Sensing vs. Holitech Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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